Question - Moss issues bonds with a par value of $90,000 on January 1, 2011. The bonds' annual contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 10%, and the bonds are sold for $85,431.
Prepare an amortization table for these bonds; use the straight-line method to amortize the discount.