Fred Corp. provides the following two lines of a bond amortization schedule:
Required:
Answer the following:
a. Identify the column headings.
| Interest Payment Date |
Interest Paid |
1 |
2 |
3 |
Carrying Value |
| 6/30/2014 |
$3,200 |
$200 |
$3,400 |
$2,200 |
$77,800 |
| 12/31/2014 |
$3,200 |
$200 |
$3,400 |
$2,000 |
$78,000 |
b. Was the bond issued at a discount, a premium, or at face value?
c. What is the face value of the bonds?
d. What is the stated interest rate?
e. Is the market interest rate greater than, less than, or equal to the stated interest rate?