At the end of 2019, TD Ameritrade has bonds payable with a net carrying value of $7,578 million on its balance sheet, including both the $7,000 million principal and $578 million Premium on bonds...

At the end of 2019, TD Ameritrade has bonds payable with a net carrying value of $7,578 million on its balance sheet, including both the $7,000 million principal and $578 million Premium on bonds payable. The bonds' stated rate is 5% (paid annually), the current market rate is 3%, and the market rate at the time the bonds were issued was 4%. How much will interest expense on the bond be during 2020? How much will the bond premium be amortized during 2020? • Cash interest payment= Principal x Stated/Coupon Interest rate x Portion of year for which payment is made (e.g. full year or ½ year) • Interest expense = Bond carrying value / book value x Market Interest rate at issuance x Portion of year for which expense is incurred (e.g. full year or ½ year) • Amortization of (Decrease in) Premium or Discount on Bond Payable = ¦Interest expense – Cash interest payment ¦ • Debt-to-Equity = Total Liabilities / Total Stockholders’ Equity.