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What is the amount of the premium on these bonds at issuance

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Question - Straight-Line: Amortization of bond premium

Duatro Co. issues bonds dated January '1, 2019. with a par value of $300,000. The bonds' annual contract rate is 13%. 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 12%, and the bonds are sold for $319.000.

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

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

3. Prepare a straight-line amortization table for these bonds.

Reference no: EM132573640

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