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New Home, Inc. invested in the following bond issued by Old Home, Inc. on January 1, Yr1. The companys amortization schedule appears below:

Date	Cash Flow	Interest Revenue	Amortized Discount	Bond Discount	Book Value of Bond	Fair Value
1/1/Yr1				$16,158	?
6/30/Yr1	?	$11,692	$1,692	$14,466	$235,534	$240,000
12/31/Yr1	?	$11,777	$1,777	$12,689	$237,311	$242,000
6/30/Yr2	?	$11,866	$1,866	$10,824	$239,176	$244,000
12/31/Yr2	?	$11,959	$1,959	$ 8,865	$241,135	$246,000
6/30/Yr3	?	$12,057	$2,057	$ 6,808	$243,192	$248,000
12/31/Yr3	?	$12,160	$2,160	$ 4,649	$245,351	$250,000
6/30/Yr4	?	$12,268	$2,268	$ 2,381	$247,619	$252,000
12/31/Yr4	?	$12,381	$2,381	$ 0	?	$254,000

Use the amortization table to answer the following questions.

a) What is the maturity value of the bond?

b) How much cash did New Home, Inc. pay upon purchasing the bond?

c) If you were an investor that had purchased one fourth of the notes, how much interest would you receive during Yr3? How much interest would you have earned?

d) What interest rate and how many periods were used to determine the present value of the bond.

e) If New Home sold this bond (classified as trading security) on 1/10/Yr3 for $246,500, prepare the necessary journal entries for the sale.

f) If New Home sold this bond (classified as available for sale security) on 1/10/Yr3 for $244,500, prepare the necessary journal entries for the sale.

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