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Required information [The following information applies to the questions displayed below.] Christmas Anytime issues $850,000 of 6% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Calculate the issue price of a bond and complete the first three rows of an amortization schedule when: 3. The market interest rate is 5% and the bonds issue at a premium. (FV of $1. PV of $1. EVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Round your answers to nearest whole dollar.) Issue price Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 01/01/2021 06/30/2021 12/31/2021 12/31/2011

Answer 1

	Period	(850,000*3%)	Present value	Calculation of PV
	1	25500	$24,878	(25,500/(1.025)^1)
	2	25500	$24,271	(25,500/(1.025)^2)
	3	25500	$23,679	(25,500/(1.025)^3)
	4	25500	$23,102	(25,500/(1.025)^4)
	5	25500	$22,538	(25,500/(1.025)^5)
	6	25500	$21,989	(25,500/(1.025)^6)
	7	25500	$21,452	(25,500/(1.025)^7)
	8	25500	$20,929	(25,500/(1.025)^8)
	9	25500	$20,419	(25,500/(1.025)^9)
	10	25500	$19,921	(25,500/(1.025)^10)
	11	25500	$19,435	(25,500/(1.025)^11)
	12	25500	$18,961	(25,500/(1.025)^12)
	13	25500	$18,498	(25,500/(1.025)^13)
	14	25500	$18,047	(25,500/(1.025)^14)
	15	25500	$17,607	(25,500/(1.025)^15)
	16	25500	$17,177	(25,500/(1.025)^16)
	17	25500	$16,758	(25,500/(1.025)^17)
	18	25500	$16,350	(25,500/(1.025)^18)
	19	25500	$15,951	(25,500/(1.025)^19)
	20	875500	$534,292	(87,5500/(1.025)^20)
			$916,254
3	Issue price	$916,254
	Date	Cash paid	Interest expense	Change in carrying value	Carrying value
	01/01/2021				$916,254
	06/30/2021	$25,500	$22,906	-$2,594	$913,660
	12/31/2021	$25,500	$22,842	-$2,658	$911,002