Pharoah Technologies Ltd. issued bonds with a face value of $72,000,000 that mature in 15 years. The bonds carry a 5.0% interest rate and are sold at 105.41 to yield 4.50%. The bonds pay interest semi-annually. (a) Complete the first four payments of the bond amortization schedule below: (Round answers to O decimal places, e.g. 125.) Date Issuance Payment 1 Payment 2 Payment 3 Payment 4 $ Interest Payment Interest Expense Amortization of Bond Premium Balance Bond Prer
Pharoah Technologies Ltd. issued bonds with a face value of $72,000,000 that mature in 15 years. The bonds carry a 5.0% interest rate and are sold at 105.41 to yield 4.50%. The bonds pay interest semi-annually. (a) Complete the first four payments of the bond amortization schedule below: (Round answers to O decimal places, e.g. 125.) Date Issuance Payment 1 Payment 2 Payment 3 Payment 4 $ Interest Payment Interest Expense Amortization of Bond Premium Balance Bond Prer
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Pharoah Technologies Ltd. issued bonds with a face value of $72,000,000 that mature in 15 years. The bonds carry a 5.0% interest rate
and are sold at 105.41 to yield 4.50%. The bonds pay interest semi-annually.
(a)
Complete the first four payments of the bond amortization schedule below: (Round answers to O decimal places, e.g. 125.)
Amortization of
Bond Premium
Date
Issuance
Payment 1
Payment 2
Payment 3
Payment 4
$
Interest
Payment
SA
Interest
Expense
LA
Balance
Bond Prer
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