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Dumbledore has decided to issue a 10-year, $3,500,000 bond with interest paid semiannually. The market rate (yield) for bonds of similar risk and maturity is

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Dumbledore has decided to issue a 10-year, $3,500,000 bond with interest paid semiannually. The market rate (yield) for bonds of similar risk and maturity is 6%. Dumbledore is considering a stated (coupon) rate of 4%, 6%, or 8%.
B D H N 5 Dumbledore has decided to issue a 10-year, $3,500,000 bond with interest paid semiannually The market rate lyeld for bonds of similar risk and maturity is 6%. Dumbledore is considering a stated (coupon) rate of 4%, 6%, ar 9%. 4%, %. S 2. Complete the Bond Amortization Schedules for each of the three potential stated rates. Ale indicate whether the band would be iswed at a premium, discount or face amount 9 Bond Amarization Schedule with stated Rate al 4%. Bond Amoriaation Schedule with stated Rate of 6% Bond Amorization Schedule with Stated Rate of BX Payment Payment Balance (Carrying Value) Cash interest Payment Interest Expense Payment Balance Carrying Value) Cash Interest Payment Interest Expense Amortization Balance Carrying Value) Cash Interest Payment Amortization Interest Expense Amortization Beg. Balance 10 11 12 13 14 Beg Balance 1 1 Beg Balance 1 2 2 1 2 2 2 3 3 3 3 3 15 4 4 4 16 5 5 5 5 17 6 6 7 18 19 7 9 6 7 g 8 20 9 9 9 21 10 10 10 22 11 11 23 24 25 12 13 12 13 14 14 11 12 13 14 15 16 17 26 15 15 16 16 27 28 17 17 29 18 18 18 30 19 19 19 31 20 20 20

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