Prepare an amortization table for sycamore

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1.On January 1, 2010 Sycamore Co. issued 7%, 5 year bonds with a face amount of 5 million dollars. The market yield for bonds of similar risk and maturity was 8%. Interest is paid semiannually on June 30 and December 31. Prepare an amortization table for Sycamore Co. assuming the effective interest method is used. Follow the format of the amortization table on page 792 in your text. Round amounts to the nearest dollar. Include all 10 payments in your table and totals for cash paid, interest expense, and discount amortized.

2.Prepare an amortization table for Sycamore Co. assuming the market rate was 6% and the effective interest method is used. Follow the format of the amortization table on page 793 in your text. Round amounts to the nearest dollar. Include all 10 payments in your table and totals for cash paid, interest expense, and premium amortized.

3.Prepare an amortization table for Sycamore assuming the market rate was 8% and the company elected to use the straight-line amortization method since the results were not materially different from the effective int. method.

Reference no: EM13499012

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