Hambelton Ltd. issued $3,750,000 of 5% bonds payable on 1 September 20X9 to yield 4%. Interest on the bonds is paid semi-annually and is payable each 28 February and 31 August. The bonds were dated 1 March 20X8, and had an original term of five years. The accounting period ends on 31 December. The effective-interest method is used. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price at which the bonds were issued. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) Price of Bond $ 2. Prepare a bond amortization table for the life of the bond. (Round time value factor to 5 decimal places. Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no cells blank - be certain to enter "O" wherever required.) Date Opening 1 2 3 4 5 6 7 3,918,281 Interest Payment Interest Expense $ 93,750 $ 93,750 93,750 93,750 93,750 93,750 93,750 Premium Amortization 78,366 $ 78,058 77,744 77,424 77,097 76,764 76,425 15,384 15.692 16,006 16,326 16,653 16,986 17,325 Unamortized Premium $ 168,281 $ 152,897 137,205 121,199 104,873 88,220 71,234 53,909 Net Bond Liability 3,918,281 3,902,897 3,887,205 3,871,199 3,854,873 3,838,220 3,821,234 3,803,909

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