A
Semi-annual
interest Period
Interest
payment
( %) of
maturity value
B
C
Interest
Discount
Expense
Amortization
( %) of
(B-A)/
preceding bond
carrying
amount
Premium
Amortization
(A-B)
D
Discount /
Premium
Account
Balance
E
Bond Carrying
Amount
($
– D)
(Discount)
(D-C)
($
+D)
(Premium)