On January 1, 2019, The company you work for sold 6% bonds
having a maturity value of $1,000,000 and a 3% yield (market rate).
The bonds are dated January 1, 2019, and mature January 1, 2024,
with interest payable June 30 and December 31 of each year. Your
company allocates interest and unamortized discount or premium on
the effective-interest basis.
You are trying to explain the cash flow, interest and liability
impacts of the bond issue to your CEO on...