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The following amortization and interest schedule reflects the issuance of 10-year bonds by Kingbird Corporation...

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Accounting

The following amortization and interest schedule reflects the issuance of 10-year bonds by Kingbird Corporation on January 1, 2014, and the subsequent interest payments and charges. The companys year-end is December 31, and financial statements are prepared once yearly.

Amortization Schedule

Year

Cash

Interest

Amount Unamortized

Carrying Value

1/1/2014

 $55,358 $ 165,242

2014

 $22,060 $24,786 52,632 167,968

2015

 22,060 25,195 49,497 171,103

2016

 22,060 25,665 45,892 174,708

2017

 22,060 26,206 41,746 178,854

2018

 22,060 26,828 36,978 183,622

2019

 22,060 27,543 31,495 189,105

2020

 22,060 28,366 25,189 195,411

2021

 22,060 29,312 17,937 202,663

2022

 22,060 30,399 9,598 211,002

2023

 22,060 31,658 220,600

Indicate whether the bonds were issued at a premium or a discount.

Indicate whether the amortization schedule is based on the straight-line method or the effective-interest method.

Determine the stated interest rate and the effective-interest rate. (Round answers to 0 decimal places, e.g. 18%.)

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