Compute Band Proceeds, Amortizing Discount by interest Method, and Interest Expense Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd Co. issued $20,000,000 of four year, 12% bonds at a market (effective) interest rate of 14%, with interest payable semiannually. Compute the following: a. The amount of cash proceeds from the sale of the bonds. Use the tables of present values in Exhibits and exhibit 7. Round to the nearest dollar b. The amount of discount to be amortized for the first semiannual Interest payment period, using the interest method. Round to the nearest dollar c. The amount of discount to be amortized for the second semiannual interest payment period, using the interest method. Round to the nearest dolor, d. The amount of the bond Interest expense for the first year. Round to the nearest dollar 6.5% Present Value of $1 at Compound Interest Due Inn Periods Periods 4.0% 4.5% 5% 5.5% 1 0.96154 0.95694 0.95238 0.94787 2 0.92456 0.91573 0.90703 0.89845 3 0.88900 0.87630 0.86384 0.85161 4 0.85480 0.83856 0.82270 0.80722 5 0.82193 0.80245 0.78353 0.76513 0.94340 0.99000 0.83962 0.79209 0.74726 0.93897 0.88166 0.82785 0.77732 0.72988 0.93458 0.87344 0.81630 0.76290 071299 6 7 8 9 10 0.79031 0.75992 0.73069 0.70259 0.67556 0.76790 0.73483 0.70319 0.67290 0.64393 0.74622 0.71068 0.67684 0.64461 0.61391 0.72525 0.68744 0.65160 0.61763 0.58543 0.70496 0.66506 0.62741 0.59190 0.55839 0.68533 0.64351 0.60423 0.56735 0.53273 0.66634 0.62275 0.58201 0.54393 0.50835 11 12 13 14 15 0.64958 0.62460 0.60057 0.57748 0.55526 0.61620 0.58966 0.56427 0.53997 0.51672 0.58468 0.55684 0.53032 0.50507 0.48102 0.55491 0.52598 0.49856 0.47257 0.44793 0.52679 0.49697 0.46884 0.44230 0.41727 0.50021 0.46968 0.44102 0.41410 0.38883 0.47509 0.44401 0.41496 0.38782 0.36245 0.53391 0.51337 0.49363 0.47464 0.45639 0.49447 0.47318 0.45280 0.43330 041464 0.45811 0.43630 0.41552 0.39573 0.37689 0.42458 0.40245 0.38147 0.36158 0.34273 0.39365 0.37136 0.35034 0.33051 0.31180 0.36510 034281 032189 0.30224 0.28380 0.33873 0.31657 0.29586 0.27651 0.25842 0.43883 0.42196 0.40573 0.39012 0.37512 0.39679 0.37970 0.36335 0.34770 0.33273 0.35894 0.34185 0.32557 0.31007 0.29530 0.32486 0.30793 0.29187 0.27666 0.26223 0.29416 0.27751 0.26180 0.24698 0.23300 0.26648 0.25021 0.23494 0.22060 0.20714 0.24151 0.22571 0.21095 Q.19715 0.18425 26 BT% 0.36069 0.34682 0.33348 0.32065 0.30832 0.31840 0.30469 0.29157 0.27902 0.26700 0.28124 0.26785 0.25509 0.24295 0.23138 0.24856 0.23560 0.22332 0.21168 0.20064 0.21981 0.20737 0.19563 0.18456 0.17411 0.19450 0.18263 0.17148 0.16101 0.15119 0.17220 0.16093 0.15040 0.14056 0.13137 30 0.29646 0.28506 0.27409 0.26355 0.25342 0.25550 0.24450 0.23397 0.22390 0.21425 0.22036 0.20987 0.19987 0.19035 0.18129 0.19018 0.18027 0.17087 0.16196 0.15352 0.16425 0.15496 0.14619 0.13791 0.13011 0.14196 0.13329 0.12516 0.11752 0.11035 0.12277 0.11474 0.10723 0.10022 0.09366 34 35 40 0.20829 0.17193 0.14205 0.11746 0.09722 0.08054 0.06678 45 0.17120 0.13796 0.11130 0.08988 0.07265 0.05879 0.04761 50 0.14071 0.11071 0.08720 0.06877 0.05429 0.04291 0.03395 11% 12% 13% 1496 Present Value of $1 at Compound Interest Due in n Periods Periods 8% 9% 10% 1 0.92593 0.91743 0.90909 2 0.85734 0.84168 0.82645 3 0.79383 0.77218 0.75131 4 0.73503 0.70843 0.68301 5 0.68058 0.64993 062092 0.90090 0.81162 0.73119 0.65873 0.59345 0.89286 0.79719 0.71178 0.63552 0.56743 0.88496 0.78315 0.69305 0.61332 0.54276 0.87719 0.76947 067497 a 59208 051937 6 7 8 0.63017 0.58349 0.54027 0.50025 0.46319 0.59627 0.54703 0.50187 0.46043 0.42241 0.56447 0.51316 0.46651 0.42410 0.38554 0.53464 0.48166 0.43393 0.39092 035218 0.50663 045235 0.40388 0.36061 0.32197 0.48032 042506 0.37616 0.33288 0.29459 0.45559 0.39964 0.35056 030751 0.26974 9 10 11 12 13 14 15 0.A2888 0.39711 0.36770 0.34046 0.31524 0.38753 0.35553 0.32618 0.29925 0.27454 0.35049 0.31863 0.28966 0.26333 0.23939 031728 0.28584 0.25751 0.23199 0.20900 0.28748 0.25668 0.22917 0.20462 0.18270 0.25070 0.23071 0.20416 0.18068 0.15999 0.23662 0.20756 0.18207 0.15971 0.14010 16 17 18 19 20 0.29189 0.27027 0.25025 0.23171 0.21455 0.25187 0.23107 0.21199 0.19449 0.17843 0.21763 0.19784 0.17986 0.16351 0.14864 0.18829 0.16963 0.15282 0.13768 0.12403 0.16312 0.14564 0.13004 0.11611 0.10367 0.14150 0:12522 0.11081 0.09806 0.08678 012289 0.10780 Q.09456 0.08295 2.07276 21 22 23 24 25 0.19866 0.18394 0.17032 0.15770 0.14602 0.16370 0.15018 0.13778 0.12640 0.11597 0.13513 0.12285 0.11168 0.10153 0.092.30 0.11174 0.10067 0.09069 0.08170 0.07361 0.09256 0.06264 0.07379 0.06588 0.05882 0.07680 0.06796 0.06014 0.05323 0.04710 0.06383 Q05599 0.04911 0.0008 0.03779 26 27 28 29 30 0.13520 0.12519 0.11591 0.10733 0.09938 0.10639 0.09761 0.08955 0.08215 0.07537 0.08391 0.07628 0.06934 0.06304 0.05731 0.06631 0.05974 005382 0.04549 0.04368 0.05252 0.04689 0.04187 0.03738 0.03338 0.04168 0.03689 0.03254 0.02889 0.02557 0.03315 0.02903 0.02551 0.02237 0.01963 31 32 33 34 35 0.09202 0.08520 0.07889 0.07305 0.06763 0.06915 0.06344 0.05820 0.05339 0.04699 0.05210 0.04736 004306 0.03914 0.03558 0.03935 0.03545 0.03194 0.02578 0.02592 0.02980 0.02661 0.02376 0.02121 0.01894 0.02262 0.02002 0.01772 0.01568 0.01388 0.01722 0.01510 001325 0.01162 001019 40 0.04603 0.03184 0.02209 0.01538 0.01075 0.00753 0.00529 45 0.03133 0.02069 001372 0.00913 0.00610 0.00409 0.00275 50 0.02132 0.01345 0.00852 0.0052 0.00346 0.00222 000143 Present Value of Ordinary Annuity of S1 per Period Periods 4.0% 4.5% SAN 5.55 6.5 1 2 3 0.96154 1.88609 2.77509 3.62990 4.45182 0.95694 1.87267 2.74896 3.58753 438998 0.95238 1.85941 272325 3.54595 432948 0.94787 1.84632 2.69793 350515 4.27028 0.94340 1.83339 2.67301 3.46511 4.21236 0.93897 1.82063 264848 342500 4.15568 093458 1.80802 2.62432 3.38721 4.10020 5 6 7 8 9 10 5.24214 6.00205 6.73274 743533 8.11090 5.15787 5.89270 6.59589 726879 7.91272 5.07569 578637 6.46321 7.10782 772173 499553 568297 6.33457 695220 753763 491732 5.58238 6.20979 6.80169 7.36009 4,84101 5.48452 6.08875 6.65610 7.18883 4.76654 5:38929 5.97130 651523 7.02358 11 12 13 14 15 8.76048 9.38507 9.98565 1056312 11.11839 8.52892 9.11858 9.68285 10.22283 10.73955 830641 8.86325 9.39357 9.89864 10.37966 8,09254 8.61852 9.11708 958955 10.03758 7.88687 838384 8.85268 9.29498 971225 768904 8.15873 3.59974 9.01384 9.40267 7.49867 7.94269 835765 8.74547 9.10791 16 17 18 19 20 11.65230 12.16567 1265930 13.13394 13.59033 11.23402 11.70719 12.15999 12.59329 13.00794 10.83777 11.27407 11.68959 12.08532 12A6221 10.46216 10.86461 11.24607 11.80765 11.95038 10.10590 1047726 10.82750 11.15812 11.46992 9.76776 10.11058 1043247 10.73471 11.01851 9.44665 9.76322 10.05909 1033560 10.59401 21 22 23 24 25 14.02916 14.45112 14.85684 15.24696 15.62208 13.40472 13.78442 14.14777 14.49548 14.82821 12.82115 13.16300 13.48857 1379864 14.09394 12.27524 12.58317 12.87504 13.15170 1341393 1176406 12.04158 12.30338 12.55036 12.78336 11.29490 11.53520 110 11.92074 12.19788 10.83553 11.06124 11.27219 11.46933 11.65358 26 27 28 29 30 15.98277 16.32959 16,66306 16.98371 17.29203 15.14661 1545130 15.74267 16.02189 1626889 14.37519 14.64303 14.89813 15.14107 15.37245 13.66250 13.89810 14.12142 1433310 1453375 13.00317 13.21053 13.40616 13.59072 13.76483 12.39237 1257500 12.74648 12.90749 13.05868 11.82578 11.98671 12.13711 12.27767 1240904 31 32 33 1756849 17.87355 18.14765 1841120 18.66461 16.54439 16.78889 1702266 17.24676 17 46101 15.59281 15.80268 16,00055 16.19290 1637419 14.72393 1490120 15.07507 15.23703 1539055 13.92.909 14.08404 14.23023 1436814 14.49825 13.20063 1333393 1345900 13.57661 13.68696 12.53161 1264656 12.75379 12.85401 12.94767 34 35 40 19.79277 18401 58 17.15909 16.04612 15.04630 14.14553 13:33171 45 20.72004 19.15635 1777407 16.54773 15.45583 1448023 13.60552 8 21.48218 19.76201 18.25593 16.93152 1576186 14.72452 13280075 Present Value of Ordinary Annuity of S1 per Period Periods 89 10% 12% 1396 14% 1 2 3 0.92593 1.78326 2.57710 331213 3.99271 0.91743 1.75911 2.53129 3.23972 3.88965 0.90909 1.73554 248685 3.16987 3.79079 0.90090 1.71252 244371 3.10245 3.69590 0.89286 1.69005 240183 3.03735 3.60478 0.88496 1.66810 2.36115 297447 3.51723 0.87719 1.64666 2.32163 2.91371 3A3308 5 6 7 8 9 10 4,62288 5.20637 5.74664 6.24689 6.71008 4.48592 5.03295 5.53482 5.99525 641766 4.35526 4.86842 5.33493 5.75902 6.14457 4.23054 4.71220 5.14612 5.53705 5.88923 4.11141 4.56376 4.96764 5.32825 5.65022 3.99755 4.42261 4.79677 5.13166 5.42624 3.88867 428830 4.63886 4.94637 5.21612 11 12 13 14 15 7,13896 7.53608 7.90378 8.22424 8.55948 6.80519 7.16073 748690 7.78615 B.06069 6.49506 6.81369 7.10336 7.36669 7.60608 6.20652 6.49236 6.74987 6.96187 7.19087 5.93770 6.19437 6.42355 6,62817 6.81086 5.68694 5.91765 612181 6.30249 6.46238 545273 5.66029 5.84236 6.00207 6.14217 16 17 18 19 20 8.85137 9.12164 9.37189 9.60360 9.81815 8.31256 8.54363 8.75563 8.95011 9.12855 7.82371 8.02155 8.20141 8.36492 851356 737916 7.54879 7.70162 7.83929 7.96333 6.97399 7.11963 7.24967 736578 7.46944 6.60388 6.72909 6.83991 6.93797 7.02475 6.26506 6.37286 6.46742 655037 6.62313 21 22 23 24 25 10.01680 10.20074 10.37106 10.52876 10.67478 9.29224 9.44243 9.58021 9.70661 9.82258 8.64869 8.77154 8.88322 8.98474 9.07704 8.07507 8.17574 8.26643 8.34814 842174 7.56200 7.64465 7.71843 7.78432 7.84314 7.10155 7.16951 7.22966 7.28288 7.32998 6.68696 6.74294 6.79206 6.83514 6.87293 26 27 28 29 30 10.80998 10.93516 11.05108 11.15841 11.25778 9.92897 10.02658 10.11613 10.19828 10.27365 9.16095 9.23722 9.30657 9.36961 942691 8.48806 8.54780 8.60162 8.65011 8.69379 7.99566 7.94255 7.98442 B.02 181 8.05518 7.37167 740856 744120 747009 7.49565 6.9060B 6.93515 6.96066 6.98304 7.00266 31 32 33 34 35 11.34980 1143500 11.51389 1158693 11,65457 10.34280 10.40624 10.46444 1051784 10.56682 9.47901 9.52638 9.56943 9.60857 9.64416 8.73315 8.76860 8.80054 8.82932 8.85524 8.08499 8.11159 8.13535 8.15656 8.17550 7.51828 7.53830 7.55602 7.57170 7.58557 7.01988 7.03498 7.04823 7.05985 7.07005 9.77905 8.95105 8.24378 7.63438 7.10504 40 10.75736 11.92461 8.28252 9.86281 7.66086 9.00791 45 12.10840 7.12322 10.88120 9.64165 7.67524 8.30450 7.13266 50 10.96168 12.23348 9.91481