already have answers but would like to double check please

will upvote

Preemptive Co. owns 80% of Strike Co. common voting shares (both are 'public companies'). On 1/1/A, S issues $100,000 of 10 -year 4% bonds, issued to yield 3%; the bond date is 1/1/A (thus coupon payments occur each 12/31). P purchases 80 of the bonds on 12/31/E to provide S with some sympathetic relief; the other bondholders, a particularly surly lot, refuse to sell. Assume that the market interest rate has skyrocketed due to Fed intervention, permitting P to buy the 80 bonds at the bargain price of $67,223.33. For credit, you must provide the following: 1. Provide (attach) a printout of your Excel amortization table for the interfirm bonds from the point of view of SCo. from 12/31/E to maturity. You must use the interest method of amortization and the table format I used in class in section 8. 2. Provide (attach) a printout of your Excel amortization table for the interfirm bonds from the point of view of PCo. from 12/31/E to maturity. This table should be on the same worksheet as the table you prepare for item \#1 above; that is, both tables should be on the same Excel worksheet. You must use the interest method of amortization and the table format I used in class (section 8). [Hint: you must figure out the market rate of interest on the repurchase date first.] 3. Calculate the Gain/Loss on Constructive Retirement that 'Preemptive Strike' will report on their Consolidated Income Statement; show that it is the difference between S's 12/31/E bond net book value and P's 12/31/E repurchase price in the tables above. These should be the first 2 numbers in your amortization tables. This amount is 4. The above amount is a constructive gain / loss (circle which). 5. Calculate total interest expense for the years following the repurchase (just total the interest column in S's amortization table); this amount is 6. Calculate total interest revenue for the years following the repurchase (just total the interest column in P's amortization table); this amount is