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B.Amortizing a Bond (10 points) On January 1 of this year. Picadilly Cominany issued a...

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Accounting

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B.Amortizing a Bond (10 points) On January 1 of this year. Picadilly Cominany issued a bond with a face value of $16,000 anda coupon rate of 2 percent. The bond matures in three years and pays Interest cach December 31. When the bond was issued, the annual market rate of interest was 3 percent Fill in all nine boxes on the chart below to complete the amortization schedule. Show you in the space below the chart for credit. 9 points) Cash Owed for Interest Amortization of Book Value of Interest Expense Bond Bond Date 15.547 Book Value x 3% x 1 year Par Value x 2% x 1 year 320 320 Jan 1, Year 1 Dec 31, Year 1 Dec 31, Year 2 Dec 31, Year 3 320 Question: Was this bond issued at a premium or discount? How can you tell? (l point)

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