2 On January 1, 2017, Silicon Valley Bank purchased 3% bonds having a face value of $25,000,000,000 to yield a 2% market rate. 3 The bonds are dated January 1, 2017 and mature January 1, 2027 (10 year term), with interest payable semiannually (July 1 and January 1) each year. 4 5 Instructions 6 Prepare complete bond amortization schedules for Silicon Valley Bank using the Excel templates on the following tabs. 7 8 Tab 1: Assume SVB allocates interest and unamortized discount or premium on the EFFECTIVE-INTEREST (EI) basis. 9 10 Tab 2: Assume SVB allocates interest and unamortized discount or premium on the STRAIGHT-LINE (SL) basis. 11 12 Notes: Compute the present value of the bond using Excel formulas. All highlighted cells should be formulas. 13 14 Questions Tab: Using your tables, answer the related questions on the question tab. 15 For #3 of the Questions Tab, use Rate function to calculate the ANNUAL interest rate. 16 17 18 19 20 21 22 F G H C D E 1 Cash 2 3 Date Cash Receipt Number Interest Reciept Interest Revenue Premium Amortization Carrying Amount Amount Of Bonds 4 Start No need to enter anything here. 5 1 6 2 7 3 8 41 9 5 10 6 11 7 12 8 13 9 14 10 15 11 16 12 17 13 18 14 19 15 20 16 21 17 22 18 23 19 24 20 25 261 27 28 29 Ready $0 $0 $0 Instructions Tab 1 El Template Tab 2 SL Template Questions Accessibility: Investigate A A B C D E F G H 1 Cash 2 Cash Receipt Interest Interest Premium Amortization Carrying 3 Date Number Reciept Revenue Amount Amount Of Bonds 4 Start No need to enter anything here 5 1 6 2 7 3 B 4 9 5 10 6 11 7 12 8 13 9 14 10 15 11 16 12 17 13 18 14 19 15 20 16 21 17 22 18 23 19 24 20 25 26 $0 $0 $0 27 28 29 30 31 32 Ready Instructions Tab 1 El Template Tab 2 SL Template Questions Accessibility: Investigate Type here to search