Question: Christmas Anytime issues $750,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.
Required: Calculate the issue price of a bond and complete the first three rows of an amortization schedule when:
1. The market interest rate is 7% and the bonds issue at face amount.
2. The market interest rate is 8% and the bonds issue at a discount.
3. The market interest rate is 6% and the bonds issue at a premium.