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A firm issued $1,000,000, face amount of 4% bonds on January 1, 2016. The bonds are 5-year bonds, and interest is payable every six months.

A firm issued $1,000,000, face amount of 4% bonds on January 1, 2016. The bonds are 5-year bonds, and interest is payable every six months. At the time of issue, the market rate of interest was 6%. Calculate the present value of this bond showing your work. Prepare an amortization table in Excel for this bond.

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