Amount of discount or premium to be amortized


Question 1: The present value of $30,000 to be received in two years, at 12% compounded annually, is (rounded to nearest dollar) ________.

Question 2: When the market rate of interest was 11%, Welch Corporation issued $100,000, 8%, 10-year bonds that pay interest semiannually. Using the straight-line method, the amount of discount or premium to be amortized each interest period would be ________.

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Finance Basics: Amount of discount or premium to be amortized
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