D$23$

A

B

Name:

Google

C

D

E

F

G

$=$ G$17*($D$10$

$1$

$2$

The Google Company issues $11\%,3-$year bonds with a par value of $$460,000$ and semiannual interest payments. On the issue date, the annual market rate for these bonds is $12\%.$ Enter a valid Excel formula or function in each of the yellow cells below. Formulas must refer to cells addresses. Entering a value will be marked as incorrect.

Par Value

Term $($years$)$

Annual market $\%$

Annual contract $\%$

Payments per year

$\begin{array}{cc}\text{\$}460& 000\\ 3& ?\\ 12\%& ?\\ 11\%& ?\\ 2& ?\end{array}$

What is the amount of each semiannual interest payment?

How many semiannual payments of $$25,300$ will be made in total?

Using the PV function, calculate the issue price of the bond. Make sure the formula

$\backslash$table$[[$$$25,300],[6],[$$$448,690\mathrm{.}15]]$

returns a positive value. See the instructions tab for help on the PV function.

Complete the amortization schedule for these bonds.

$\backslash$table$[[\backslash$table$[[$Semiannual$],[$Interest Period$]],\backslash$table$[[$Cash Interest$],[$Paid$]],\backslash$table$[[$Bond Interest$],[$Expense$]],\backslash$table$[[$Discount$],[$Amortization$]],\backslash$table$[[$Unamortized$],[$Discount$]],\backslash$table$[[$Carrying$],[$Value$]]],[0],[1,$$$25,300\mathrm{.}00,$$$26,921\mathrm{.}41,,,],[2,$$$25,300\mathrm{.}00,,,,],[3,$$$25,300\mathrm{.}00,,,,],[4,$$$25,300\mathrm{.}00,,,,],[5,$$$25,300\mathrm{.}00,,,,],[6,$$$25,300\mathrm{.}00,,,,],[,,,,,],[,,,,,],[,,,,,],[,,,,,],[$Totals$,$$$151,800\mathrm{.}00,$$$26,921\mathrm{.}41,$$$0\mathrm{.}00,,]]$