Compute Bond Proceeds, Amortiring Premium by Interest Method, and Interest Expense Ware Co, produces and sells motorcycle parts. On the first day of its fiscal year, Ware Co. Issued $80,000,000 of three year, 14% bonds at a market (effective) interest rate of 12%, 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 Exhibit B and Exhibit 10. Round to the nearest dollar $ 82,138,455 X b. The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round to the nearest dollar. $ 671,693 x C. The amount of premium to be amortized for the second semiannual intere 711,999 X ayment period, using the interest method. Round to the nearest dollar. d. The amount of the bond interest expense for the first year. Round to the nearest dollar $ 12,583,687 X S Present Value of $1 at Compound Interest EXHIBITS Periods 5% 4% 0.96154 0.92456 0.88900 0.85480 0.82193 0.79031 0.75992 0.73069 0.70259 0.67556 472% 0.95694 0.91573 0.87630 0.83856 0.80245 0.76790 0.73483 0.70319 0.67290 0.64393 5%% 0.95238 0.94787 0.90703 0.89845 0.86384 0.85161 0.82270 0.80722 0.78353 0.76513 0.74622 0.72525 0.71068 0.68744 0.67684 0.65160 064461 0.61763 0.61391058543 6% 0.94340 0.89000 0.83962 0.79209 0.74726 070496 0.66506 0.62741 0.59190 0.55839 6%% 0.93897 0.88166 0.82785 0.77732 0.72988 0.68533 0.64351 0.60423 0.56735 053273 7% 0.93458 0.87344 0.81630 0.76290 0.71299 0.66634 0.62275 0.58201 0.54393 0.50835 OO DOO 10% 0.90909 0.82645 0.75131 0.68301 0.62092 0.56447 0.51316 0.46651 0.42410 0.38554 11% 0.90090 0.81162 0.73119 0.65873 0.59345 053464 0.48166 0.43393 0.39092 035218 12% 0.89286 0.79719 0.71178 0.63552 0.56743 0.50663 0.45235 0.40388 0.36061 0.32197 13% 0.88496 0.78315 0.69305 0.61332 0.54276 0.48032 042506 0.37616 033288 0.29459 EXHIBIT 10 Present Value of an Annuity of $1 at Compound Interest Periods 4% 48% 0.96154 0.95694 1.886091.87267 2.77509 2.74896 3.62990 3.58753 4.45182 4.38998 5.24214 5.15787 6.00205 5.89270 6.73274 6.59589 7.435337.26879 8.11090 7.91272 5% 57% 6% 0.95238 0.94787 0.94340 1.85941 1.84632 1.83339 2.72325 2.69793 2.67301 354595 3.50515 346511 432948 4.27028 4.21236 5.07569 4.99553 4.91732 5.78637 5.68297 5.58238 6.46321 6.33457 6.20979 7.10782 6.95220 6.80169 7.721737.53763 736009 LLLL 67% 0.93897 1.82063 2.64848 342580 4.15568 4.84101 5.48452 6.08875 6.65610 7.18883 0.93458 1.80802 2.62432 3.38721 4.10020 4.76654 5.38929 5.97130 6.51523 7.02358 10% 11% 0.909090 .90090 1.73554 1.71252 2.48685 244371 3.16987 3.10245 3.79079 3.69590 4.35526 4.23054 4.86842 4.71220 5.33493 5.14612 575902 5.53705 6.14457 5.88923 12% 13% 0.89286 0.88496 1.69005 1.66810 280183 236115 3.03735 2.97447 3.60478 5.60478 3.51723 4.11141 3.99755 4.56376 442261 4.96764 479677 5.32825 5.13166 5.65022542624