Answer To: PartI: Watch this video about tips for investing in bonds. From this video research and discuss bond...
Aarti J answered on Oct 20 2020
Sheet1
Calculating the cash received on issuance of bonds:
Present value of $200000 to be discounted @ 4.5% for 10 years $ 128,785.54
PV of interest $ 79,127.18
PV of bonds $ 207,913
Period Beginning Interest expense Inteest paid Premium Amortized Unamortizedpremium End of period carrying amount
0 $ 7,913 $ 207,913
1 $ 207,913 $ 9,356.07 10000 $ 643.93 $ 7,268.79 $ 207,268.79
2 $ 207,269 $ 9,327.10 10000 $ 672.90 $ 6,595.89 $ 206,595.89
3 $ 206,596 $ 9,296.81 10000 $ 703.19 $ 5,892.70 $ 205,892.70
4 $ 205,893 $ 9,265.17 10000 $ 734.83 $ 5,157.87 $ 205,157.87
5 $ 205,158 $ 9,232.10 10000 $ 767.90 $ 4,389.98 $ 204,389.98
6 $ 204,390 $ 9,197.55 10000 $ 802.45 $ 3,587.53 $ 203,587.53
7 $ 203,588 $ 9,161.44 10000 $ 838.56 $ 2,748.96 $ 202,748.96
8 $ 202,749 $ 9,123.70 10000 $ 876.30 $ ...