Question
Building a Note Amortization Table. Patterson, Inc. issued $156,000,000 maturity value of three-year notes, which carried a coupon rate of 4% and which paid interest
Building a Note Amortization Table. Patterson, Inc. issued $156,000,000 maturity value of three-year notes, which carried a coupon rate of 4% and which paid interest semiannually. At the time of the note sale, equivalent risk-rated debt instruments carried a yield rate of 5%. Develop a note amortization table for Patterson's 4%, three-year notes. What is face value of the notes: $Answer 1
Calculate the present value of the notes: Note: Round each below entry to the nearest dollar and use the rounded amounts in any further calculations.
Present value of principle: | Answer 2 |
Present value of interest payments: | Answer 3 |
Present value of note payable: | Answer 4 |
What is the note discount: | Answer 5 |
Note: When filling out the below table round each calculated amount to the nearest dollar before proceeding with further calculations.
Patterson, Inc. | ||||||
---|---|---|---|---|---|---|
5% Note Amortization Table | ||||||
(1) | (2) | (3) | (4) | (5) | (6) | |
Cash | Interest | Discount | Discount | Face Value | Book Value | |
Period | Payment | Expense | Amortization | Balance | of Notes | of Notes |
Beg. of period | Answer 6 | Answer 7 | Answer 8 | |||
End of period 1 | Answer 9 | Answer 10 | Answer 11 | Answer 12 | Answer 13 | Answer 14 |
End of period 2 | Answer 15 | Answer 16 | Answer 17 | Answer 18 | Answer 19 | Answer 20 |
End of period 3 | Answer 21 | Answer 22 | Answer 23 | Answer 24 | Answer 25 | Answer 26 |
End of period 4 | Answer 27 | Answer 28 | Answer 29 | Answer 30 | Answer 31 | Answer 32 |
End of period 5 | Answer 33 | Answer 34 | Answer 35 Mark 0.00 out of 1.00 | Answer 36 | Answer 37 | Answer 38 |
End of period 6 | Answer 39 | Answer 40 | Answer 41 | Answer 42 | Answer 43 | Answer 44 |
Your calculations may differ slightly due to rounding differences. |
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