What is the amount of the discount or premium on bonds

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Question - Walker Corporation issued 14%, five-year bonds with a par value of $5,000,000 on January 1, 2020. Interest is to be paid semiannually on each June 30 and December 31. The bonds were issued at $5,368,035 cash when the market rate for this bond was 12%.

1. What is the amount of each semiannual interest payment for these bonds?

2. How many semiannual interest payments will be made on these bonds over their life?

3. Use the interest rates given to determine whether the bonds are issued at par, at a discount, or at a premium.

4. What is the amount of the discount or premium on bonds?

5. What is the semiannual straight-line amortization amount?

Reference no: EM132921537

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