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D E Bond Amorization Schedule with Stated Rate of 5% Payment Cash Interest Payment Interest Expense Balance (Carrying Value) Amortization Beg. Balance 1 2 3

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D E Bond Amorization Schedule with Stated Rate of 5% Payment Cash Interest Payment Interest Expense Balance (Carrying Value) Amortization Beg. Balance 1 2 3 4 5 6 7 8 9 10 $ 200,000.00 $ 200,000.00 $ 200,000.00 $ 200,000.00 $ 200,000.00 $ 200,000.00 $ 200,000.00 $ 200,000.00 $ 200,000.00 $ 200,000.00 $ 200,000.00 $ 200,000.00 $ 200,000.00 $ 200,000.00 $ 200,000.00 $ 200,000.00 $ 200,000.00 $ 200,000.00 $ 200,000.00 $ 200,000.00 11 12 13 6 GS #RE 14 15 16 17 18 19 20 This bond would be issued at Bond Amorization Schedule with Stated Rate of 7% Payment Cash Interest Payment Interest Expense Balance (Carrying Value) Amortization Beg. Balance 1 2 3 4 5 6 on 7 8 9 + 10 $ 280,000.00 $ 280,000.00 $ 280,000.00 $ 280,000.00 $ 280,000.00 $ 280,000.00 $ 280,000.00 $ 280,000.00 $ 280,000.00 $ 280,000.00 $ 280,000.00 $ 280,000.00 $ 280,000.00 $ 280,000.00 $ 280,000.00 $ 280,000.00 $ 280,000.00 $ 280,000.00 $ 280,000.00 $ 280,000.00 11 12 13 14 15 16 17 18 19 20 This bond would be issued at Bond Amorization Schedule with Stated Rate of 9% Payment Cash Interest Payment Interest Expense Balance (Carrying Value) Amortization Beg. Balance 2 3 4 5 6 7 8 9 10 $360,000.00 $360,000.00 $360,000.00 $360,000.00 $360,000.00 $360,000.00 $360,000.00 $360,000.00 $360,000.00 $360,000.00 $360,000.00 $360,000.00 $360,000.00 $360,000.00 $360,000.00 $360,000.00 $ 360,000.00 $360,000.00 $360,000.00 $360,000.00 11 12 13 14 15 16 17 18 19 20 This bond would be issued at Dumbledore has decided to issue a 10-year, $4,000,000 bond with interest paid semiannually. The market rate (yield) for bonds of similar risk and maturity is 7%. Dumbledore is considering a stated (coupon) rate of 5%, 7%, or 9%. 5 6 1. Complete the Bond Amortization Schedules for each of the three potential stated rates. Alen Indischarake Land... La

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