On January 1,2015,Cadance Company purchased bonds with a maturity value of $100,000 for $80,747.These bonds have a 12% coupon rate payable semi-annually on June 30 and December 31.The bond matures on December 31,2019.On January 1,2015,the market yield for bonds of equivalent risk and maturity was 18%.
Required:
Prepare an amortization schedule that shows the amortized cost of this bond at the end of each of five years and the amount of interest income for each of those five years.

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The Answer of On January 1,2015,Cadance Company purchased bonds with a maturity value of $100,000 for $80,747.These bonds have a 12% coupon rate payable semi-annually on June 30 and December 31.The bond matures on December 31,2019.On January 1,2015,the market yield for bonds of equivalent risk and maturity was 18%.
Required:
Prepare an amortization schedule that shows the amortized cost of this bond at the end of each of five years and the amount of interest income for each of those five years.

On January 1,2015,Cadance Company Purchased Bonds with a Maturity Value