On January 1, Eagle, Inc., issued $800,000 of ten percent, 20-year bonds for $958,342, yielding an effective interest rate of eight percent. Semiannual interest is payable on June 30 and December 31 each year. The firm uses the effective interest method to amortize the premium. Required
Prepare an amortization schedule showing the necessary information for the first two interest periods. Round amounts to the nearest dollar.

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Answer

The answer and procedures of the exercise are attached in the two images below.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in 2 single sheets with the formulas indications.  

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