Computing Bond Issue Price and Preparing an Amortization Table in Excel On January 1, 2017, Springfield...
Computing Bond Issue Price and Preparing an Amortization Table in Excel
On January 1, 2017, Springfield Inc. issues $400,000 of 8% bonds that pay interest semiannually and mature in 10 years (December 31, 2026).
a. Using the Excel PRICE function, compute the issue price assuming that the bonds’ market rate is 7% per year compounded semiannually. (Use 100 for the redemption value to get a price as a percentage of the face amount, and use 1 for the basis.)
b. Prepare an amortization table in Excel to demonstrate the amortization of the book (carrying) value to the $400,000 maturity value at the end of the 20th semiannual period.
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Computing Bond Issue Price and Preparing an Amortization
Table in Excel
On January 1, 2017, Springfield...
Computing Bond Issue Price and Preparing an Amortization Table in Excel On January 1, 2017, Springfield...
Computing Bond Issue Price and Preparing an Amortization Table in Excel On January 1, 2017, Springfield Inc. issues $400,000 of 8% bonds that pay interest semiannually and mature in 10 years (December 31, 2026). a. Using the Excel PRICE function, compute the issue price assuming that the bonds’ market rate is 7% per year compounded semiannually. (Use 100 for the redemption value to get a price as a percentage of the face amount, and use 1 for the basis.) b....
M7-19. Computing Bond Issue Price Abbington Inc. issues $700,000 of 9% bonds that pay interest semiannually...
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M7-19. Computing Bond Issue Price Abbington Inc. issues $700,000 of 9% bonds that pay interest semiannually and mature in 10 years. Com- pute the bond issu a. 8% per year compounded semiannually. b. 10% per year compounded semiannually.
How
do i calculate the issue price of a bond and complete the
amortization?
Coney Island Entertainment issues $1,500,000 of 5% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Calculate the issue price of a bond and complete the first three rows of an amortization schedule when Required: 1. The market interest rate is 5% and the bonds issue at face amount. (FV of $1. PV of $1. FVA of $1,...
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