Compute Bond 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 issued $80,000,000 of five-year, 9% bonds at a market (effective) Interest rate of 12%, with interest payable semiannually. Compute the following presenting figures used in your computations: a. The amount of cash proceeds from the sale of the bonds. Use the tables of present values in Exhibits and Exhibit 7 Hound 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 dotat. d. the amount of the bond interest expense for the first year. Round to the nearest dolla Exhibit 7 Present Value of an Annuity of $1 at Compound Interest Periods 1 2 3 4 5 4% 0.96154 1.88609 2.77509 3.82990 AS182 5.24214 6.00205 6,73274 7.43533 8.11090 47% 0.95694 1.87267 2.74896 3.58753 4.38998 5.15787 5.89270 6:59589 726879 7.91222 5% 0.95238 1.85941 2.72325 3.54595 4.32948 5.07569 5.78637 6.46321 7.10782 7.72173 5%% 0.94787 1.84632 2.69793 3.50515 4,27028 4.99553 5.68297 633457 6.95220 753763 6% 0.94340 1.83339 267301 3.46511 4.21236 4.91732 5.58238 620979 6.30160 736000 67% 0.93897 1.82063 2.64848 3.42500 4.15568 4.84101 5.48452 6.08075 6,65610 7.18053 7% 0.93458 1.80802 2.62432 3.38721 4.10020 4.76654 5.38929 5.97130 651533 7,02358 10% 0.90909 1.73554 248685 3.16987 3.79079 435526 4.86842 5.33493 5.75902 6.14457 11% 0.90090 1.71252 244371 J.10245 3.69590 4.23054 4.71220 5.14612 553705 5.30923 12% 0.89286 1,69005 240183 3.03735 3.60478 4,11141 456376 4.96764 5.32825 5.65022 13% 0.88496 1.66810 2.36115 2.97447 351723 3.99755 442261 4.79677 5.13166 5.42524 6 7 8 9 10 Exhibit 5 Present Value of $1 at Compound Interest Periods 1 2 4 4% 0.96154 0.92456 088900 0.85480 082193 0.79031 0.75992 0.73069 0.70259 0.67556 46% 0.956940 0.915730 0.876300 0.838560 0.302450 0.767900 0.734830 0.703190 0672900 0.643930 5 5% 0.95238 0.90703 0.86384 0.82270 0.78353 0.74622 0.710 0.67654 0.64161 0.61391 57% 0.94787 0.89845 0.85161 0.80722 076513 0.72525 0.68744 065160 061763 0.58543 6% 0.94340 0.89000 0.83962 0.79209 0.74726 0.70496 0.56500 062741 050 0.55839 67% 0.93897 0.88166 0.82785 0.77732 0.72988 0.68533 0.6451 040423 0.56735 0.53273 7% 0.93458 0.87344 0.81630 0.76290 0.71299 0.66614 0.62275 058201 OS 050035 10% 0.90909 0.82645 0.75131 068301 062092 056447 051316 046651 042410 038554 11% 0.90090 0.81162 0.73119 065873 0.59345 0.53464 0.48166 043393 0.39092 0.35210 12% 0.89286 0.79719 0.71178 0.63552 0.56743 0.50663 045235 0.10388 O 051 13% 0.864496 0.78315 0.69305 0.61332 0.54276 0.48032 0.42500 037616 3 9 TO 02:59
