Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For the excel assignment, I would like for you to complete two amortization tables. Follow these instructions (meant to make sure you can use excel).

For the excel assignment, I would like for you to complete two amortization tables. Follow these instructions (meant to make sure you can use excel). Create each table on a separate worksheet (not file). Name the worksheets Discount and Premium assume the following for the bond: a. 10 year term b. bond payments happen semi-annually c. Principal amount of bond is 10,000,000; d. Stated rate on the bond is 8% e. Market rate of interest is 6% for one table and 10 % for the other (name the worksheets appropriately) Note that the two worksheets will have identical formulas if you use excel to its full power. The first 5 lines of the worksheet should have the following information with labels in column A and the numerical value (or formula to calculate the numerical value in column B. Number of payments Principal amount Stated Rate of Interest Market rate of interest Semi-annual payment (use a formula to calculate this referencing other cells) The sixth line of the worksheet should have calculation of the present value of the bond. Hint: use the PV function Lines 8-27 should include the amortization table. The table shall contain 5 columns. Col 1: Beginning Book Value Col 2: Interest Expense Col 3: Cash flow or payment Col 4: Reduction in Principal Col 5: Ending book value There should be nothing in the worksheet except formulas which will reference back to one of the calculations or inputs in rows 1-6. For example, your calculation of interest expense in the table will be a formula that references back to the cell address where you entered principal amount and the relevant interest rate. Using an absolute reference will make this easier for some of the work. Look that up in the help function if you dont know what that means. I will grade this by changing any value in rows 1-5. To get full credit, the entire worksheet should update accurately using the new values input in rows 1-5. Thus, the worksheet should work for any value in rows 1-5. Your last row, last column should equal the bond principal amount if you have done the table correctly

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Risk Based Approach to Conducting a Quality Audit

Authors: Karla Johnstone, Audrey Gramling, Larry E. Rittenberg

10th edition

1305080572, 978-1305465664, 1305465660, 978-1305080577

More Books

Students also viewed these Accounting questions

Question

Understand the reasons for engaging consultants

Answered: 1 week ago