How to start amortization table using the effective interest

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Reference no: EM132549991

Mathieson Co. issues a $14,500,000, 8.5 % bond on 1 October 20X4. At this time, market interest rates are in the range of 8%. The bond had a 10-year life from 1 October 20X4, and paid interest semi-annually on 31 March and 30 September.

Question 1: How to Calculate the proceeds that would be raised on bond issuance.

Question 2: How to start amortization table using the effective interest method of amortization. Complete the first four payments only.

Reference no: EM132549991

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