| Face value | 1070000 |
| Interest rate on Bond is | 8% |
| Interest Payment 1070000 x 8% x 1/2 |
42800 |
| Market Interest rate is 8% | 8% |
| Periods to maturity 10 years x 2 periods each year |
20 |
Now we will put the figure in the mentioned table as follow
| 1 | 2 | 3 | 4 | 5 |
| Date | Cash Paid | Interest ecpenses |
Increase in carrying value |
carrying value |
| Face value x Statdered Rate |
Carrying Value x Mkat rate |
( 3-2 ) | Prior carrying value + 4 |
|
| 1 /1 /12 | 1070000 | |||
| 6 /30 /12 | 42800 | 42800 | 0 | 1070000 |
| 12/31/2012 | 42800 | 42800 | 0 | 1070000 |
