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What is the amount of the premium on bonds at issuance

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Reference no: EM132675380

Quatro Co. issues bonds dated January 1, 2019, with a par value of $810,000. The bonds' annual contract rate is 12%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 10%, and the bonds are sold for $851,101.

Problem 1. What is the amount of the premium on these bonds at issuance?

Problem 2. How much total bond interest expense will be recognized over the life of these bonds?

Problem 3. Prepare a effective interest amortization table for these bonds.

Reference no: EM132675380

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