Q1. Jim bought a $1000, 6% Boeing Aircraft bond on January 1, 2002, with a maturity date of Dec 31st 2006. Equivalent bonds were also yielding 6%. Calculate the market price of the bond (5 years' interest, paid semi-annually).
Q2. Assume equivalent bonds yielded 8%. Calculate the market price of the bond.
Q3. Assuming the facts in # 2, and the bond was issued by Boeing as part of a 1000 ($1000,000) bond financing, prepare the discount amortization table. Also prepare the journal entries for 2022 and 2006.