On June 30, 2007, semiannual secured bonds having a face value of $200,000, a life of 10 years and a coupon rate of 7% were purchased to yield 6%. Assume that $214,878.28 was paid for thebonds.
a. What amount of interest revenue should be recorded at the first interest receipt date?
b. What amount of premium (or discount) will be amortized at thefirst interest receipt date?
c. What is the amount of cash flow at the first interest receipt date?