Here is my question and the solution as it is a practiceproblem. I setup an excel spreadsheet as we need to calculate Market Rate Interest Method. I have figured out a, but section b, Iam struggling with Interest Income, Investment in Able CompanyBonds and Interest Expense. The amounts in interest expense, Iunderstand where the $24,000 is from , but not the $104.08 &$109.38. If I understand those two amounts, I will be able tocalculate Investment In Able Company Bonds. As for the InterestExpense, I can calculate manually from my excel spreadsheet, butthe calculation I setup in the excel spreadsheet is off. I also attached the excel spreadsheet (see practice problem 4). Any help would beappreciated!

Lamar Corporation owns 60 percent of Humbolt Corporation's voting shares. On January 1, 20X2, Lamar Corporation sold $230,000 par value, 8 percent first mortgage bonds to Humbolt for $236,000. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1. total periods=2*10=20 Cash investment on Janauary 1, 20*2 period 1 (interest payment received) period 2 period 3 period 4 period 5 period 6 period 7 period 8 period 9 period 10 period 11 period 12 period 13 period 14 period 15 period 16 period 17 period 18 period 19 period 20 Internal Rate Market rate Cash flows -236000 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 239200 3.811% 0.03811 Lamar Corporation owns 60 percent of Humbolt Corporation's voting shares. On January 1, 20X2, Lamar Corporation sold $230,000 par value, 8 percent first mortgage bonds to Humbolt for $236,000. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1. total periods=2*10=20 Cash investment on Janauary 1, 20*2 period 1 (interest payment received) period 2 period 3 period 4 period 5 period 6 period 7 period 8 period 9 period 10 period 11 period 12 period 13 period 14 period 15 period 16 period 17 period 18 period 19 period 20 Internal Rate Market rate Cash flows -236000 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 9200 239200 3.811% 0.03811 Lamar Corporation owns 60 percent of Humbolt Corporation's voting shares. On January 1, 20X2, Lamar Corporation sold $250,000 par value, 10 percent first mortgage bonds to Humbolt for $257,000. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1. total periods=2*10=20 Cash investment on Janauary 1, 20*2 period 1 (interest payment received) period 2 period 3 period 4 period 5 period 6 period 7 period 8 period 9 period 10 period 11 period 12 period 13 period 14 period 15 period 16 period 17 period 18 period 19 period 20 Internal Rate Market rate Inteste Interest $ PMT Expense $ (257,000.00) $ 12,500.00 $ 12,284.60 $ 12,500.00 $ 12,274.30 $ 12,500.00 $ 12,263.52 $ 12,500.00 $ 12,252.21 $ 12,500.00 $ 12,240.37 $ 12,500.00 $ 12,227.96 $ 12,500.00 $ 12,214.95 $ 12,500.00 $ 12,201.33 $ 12,500.00 $ 12,187.05 $ 12,500.00 $ 12,172.09 $ 12,500.00 $ 12,156.42 $ 12,500.00 $ 12,140.00 $ 12,500.00 $ 12,122.79 $ 12,500.00 $ 12,104.76 $ 12,500.00 $ 12,085.86 $ 12,500.00 $ 12,066.07 $ 12,500.00 $ 12,045.33 $ 12,500.00 $ 12,023.59 $ 12,500.00 $ 12,000.82 $ 262,500.00 $ 11,976.96 4.780% $ 243,040.97 0.03811 Amort of Discount (Premium) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Premium Discount $ 7,000.00 (215.40) $ 6,784.60 (225.70) $ 6,558.90 (236.48) $ 6,322.42 (247.79) $ 6,074.63 (259.63) $ 5,815.00 (272.04) $ 5,542.96 (285.05) $ 5,257.91 (298.67) $ 4,959.24 (312.95) $ 4,646.29 (327.91) $ 4,318.38 (343.58) $ 3,974.80 (360.00) $ 3,614.79 (377.21) $ 3,237.58 (395.24) $ 2,842.34 (414.14) $ 2,428.20 (433.93) $ 1,994.27 (454.67) $ 1,539.60 (476.41) $ 1,063.19 (499.18) $ 564.01 (564.01) $ (7,000.00) Bonds Payable $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 BV of Bonds $ 257,000.00 $ 256,784.60 $ 256,558.90 $ 256,322.42 $ 256,074.63 $ 255,815.00 $ 255,542.96 $ 255,257.91 $ 254,959.24 $ 254,646.29 $ 254,318.38 $ 253,974.80 $ 253,614.79 $ 253,237.58 $ 252,842.34 $ 252,428.20 $ 251,994.27 $ 251,539.60 $ 251,063.19 $ 250,564.01 $ 250,000.00 Bonds Payable BV of Bonds Interest Rate Semiannual Internal Rate $ $ 250,000.00 257,000.00 10% 2 4.780% see B25 See Homework problem #3 Inteste Interest $ PMT Expense $ (617,400.00) $ 25,200.00 $ 26,239.50 $ 25,200.00 $ 26,283.68 $ 25,200.00 $ 26,329.74 $ 25,200.00 $ 26,377.75 $ 25,200.00 $ 26,427.80 $ 25,200.00 $ 26,479.98 $ 25,200.00 $ 26,534.38 $ 25,200.00 $ 26,591.10 $ 25,200.00 $ 26,650.22 $ 655,200.00 $ 26,711.85 4.250% $ 264,626.00 0.03811 total periods=2*10=20 Cash investment on Janauary 1, 20*2 period 1 (interest payment received) period 2 period 3 period 4 period 5 period 6 period 7 period 8 period 9 period 10 Internal Rate Market rate $ 17,569.16 Amort of Discount (Premium) $ $ $ $ $ $ $ $ $ $ $ 1,039.50 1,083.68 1,129.74 1,177.75 1,227.80 1,279.98 1,334.38 1,391.10 1,450.22 1,485.85 12,600.00 Premium Bonds Discount Payable $ (12,600.00) $ 630,000.00 $ (11,560.50) $ 630,000.00 $ (10,476.82) $ 630,000.00 $ (9,347.09) $ 630,000.00 $ (8,169.34) $ 630,000.00 $ (6,941.53) $ 630,000.00 $ (5,661.55) $ 630,000.00 $ (4,327.17) $ 630,000.00 $ (2,936.07) $ 630,000.00 $ (1,485.85) $ 630,000.00 $ - $ 630,000.00 BV of Bonds $ 617,400.00 $ 618,439.50 $ 619,523.18 $ 620,652.91 $ 621,830.66 $ 623,058.47 $ 624,338.45 $ 625,672.83 $ 627,063.93 $ 628,514.15 $ 630,000.00 Bonds Paya $ 630,000.00 BV of Bond $ 617,400.00 Interest Ra 8% Semiannua 2 Internal Ra 4.250% see B25 Discount 2% Lamar Corporation owns 60 percent of Humbolt Corporation's voting shares. On January 1, 20X2, Lamar Corporation sold $190,000 par value, 10 percent first mortgage bonds to Humbolt for $197,000. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1. total periods=2*10=20 Cash investment on Janauary 1, 20*2 period 1 (interest payment received) period 2 period 3 period 4 period 5 period 6 period 7 period 8 period 9 period 10 period 11 period 12 period 13 period 14 period 15 period 16 period 17 period 18 period 19 period 20 Internal Rate Market rate Inteste Interest $ PMT Expense $ (197,000.00) $ 9,500.00 $ 9,282.64 $ 9,500.00 $ 9,272.40 $ 9,500.00 $ 9,261.67 $ 9,500.00 $ 9,250.44 $ 9,500.00 $ 9,238.68 $ 9,500.00 $ 9,226.37 $ 9,500.00 $ 9,213.48 $ 9,500.00 $ 9,199.98 $ 9,500.00 $ 9,185.84 $ 9,500.00 $ 9,171.04 $ 9,500.00 $ 9,155.54 $ 9,500.00 $ 9,139.30 $ 9,500.00 $ 9,122.31 $ 9,500.00 $ 9,104.51 $ 9,500.00 $ 9,085.88 $ 9,500.00 $ 9,066.36 $ 9,500.00 $ 9,045.93 $ 9,500.00 $ 9,024.53 $ 9,500.00 $ 9,002.13 $ 199,500.00 $ 8,978.67 4.712% $ 183,027.71 0.03811 Amort of Discount (Premium) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Premium Bonds Discount Payable $ 7,000.00 $ 190,000.00 (217.36) $ 6,782.64 $ 190,000.00 (227.60) $ 6,555.04 $ 190,000.00 (238.33) $ 6,316.71 $ 190,000.00 (249.56) $ 6,067.15 $ 190,000.00 (261.32) $ 5,805.84 $ 190,000.00 (273.63) $ 5,532.21 $ 190,000.00 (286.52) $ 5,245.69 $ 190,000.00 (300.02) $ 4,945.66 $ 190,000.00 (314.16) $ 4,631.50 $ 190,000.00 (328.96) $ 4,302.54 $ 190,000.00 (344.46) $ 3,958.08 $ 190,000.00 (360.70) $ 3,597.38 $ 190,000.00 (377.69) $ 3,219.69 $ 190,000.00 (395.49) $ 2,824.20 $ 190,000.00 (414.12) $ 2,410.08 $ 190,000.00 (433.64) $ 1,976.44 $ 190,000.00 (454.07) $ 1,522.37 $ 190,000.00 (475.47) $ 1,046.91 $ 190,000.00 (497.87) $ 549.04 $ 190,000.00 (549.04) $ (0.00) $ 190,000.00 (7,000.00) BV of Bonds $ 197,000.00 $ 196,782.64 $ 196,555.04 $ 196,316.71 $ 196,067.15 $ 195,805.84 $ 195,532.21 $ 195,245.69 $ 194,945.66 $ 194,631.50 $ 194,302.54 $ 193,958.08 $ 193,597.38 $ 193,219.69 $ 192,824.20 $ 192,410.08 $ 191,976.44 $ 191,522.37 $ 191,046.91 $ 190,549.04 $ 190,000.00 Bonds Payable BV of Bonds Interest Rate Semiannual Internal Rate $ $ 190,000.00 197,000.00 10% 2 4.712% see B25 Inteste Interest $ PMT Expense $ (595,350.00) $ 24,300.00 $ 25,302.38 $ 24,300.00 $ 25,344.98 $ 24,300.00 $ 25,389.39 $ 24,300.00 $ 25,435.69 $ 24,300.00 $ 25,483.95 $ 24,300.00 $ 25,534.27 $ 24,300.00 $ 25,586.73 $ 24,300.00 $ 25,641.41 $ 24,300.00 $ 25,698.42 $ 631,800.00 $ 25,757.86 4.250% $ 255,175.07 0.03811 total periods=2*10=20 Cash investment on Janauary 1, 20*2 period 1 (interest payment received) period 2 period 3 period 4 period 5 period 6 period 7 period 8 period 9 period 10 Internal Rate Market rate $ $ $ $ total periods=2*10=20 Cash investment on Janauary 1, 20*2 period 1 (interest payment received) period 2 period 3 period 4 period 5 period 6 period 7 period 8 period 9 period 10 Internal Rate Market rate $ $ $ 16,941.69 33,883 399,748 5,252 Amort of Discount (Premium) $ $ $ $ $ $ $ $ $ $ $ 1,002.38 1,044.98 1,089.39 1,135.69 1,183.95 1,234.27 1,286.73 1,341.41 1,398.42 1,432.79 12,150.00 Premium Bonds Discount Payable $ (12,150.00) $ 607,500.00 $ (11,147.63) $ 607,500.00 $ (10,102.65) $ 607,500.00 $ (9,013.26) $ 607,500.00 $ (7,877.58) $ 607,500.00 $ (6,693.62) $ 607,500.00 $ (5,459.35) $ 607,500.00 $ (4,172.62) $ 607,500.00 $ (2,831.21) $ 607,500.00 $ (1,432.79) $ 607,500.00 $ - $ 607,500.00 BV of Bonds $ 595,350.00 $ 596,352.38 $ 597,397.35 $ 598,486.74 $ 599,622.42 $ 600,806.38 $ 602,040.65 $ 603,327.38 $ 604,668.79 $ 606,067.21 $ 607,500.00 Premium Bonds Discount Payable $ (8,100.00) $ 405,000.00 $ (7,431.75) $ 405,000.00 $ (6,735.10) $ 405,000.00 $ (6,008.84) $ 405,000.00 $ (5,251.72) $ 405,000.00 $ (4,462.41) $ 405,000.00 $ (3,639.57) $ 405,000.00 $ (2,781.75) $ 405,000.00 $ (1,887.47) $ 405,000.00 $ (955.19) $ 405,000.00 $ - $ 405,000.00 BV of Bonds $ 396,900.00 $ 397,568.25 $ 398,264.90 $ 398,991.16 $ 399,748.28 $ 400,537.59 $ 401,360.43 $ 402,218.25 $ 403,112.53 $ 404,044.81 $ 405,000.00 Bonds Payable BV of Bonds Interest Rate Semiannual Internal Rate Discount $ $ 607,500.00 595,350.00 8% 2 4.250% see B25 2% Bonds Payable BV of Bonds Interest Rate Semiannual Internal Rate Discount $ $ 405,000.00 396,900.00 8% 2 4.250% see B25 2% A Interest Income / Expense for C1 Invest in Carter for C1 Bond discount for C1 Inteste Interest $ PMT Expense $ (396,900.00) $ 16,200.00 $ 16,868.25 $ 16,200.00 $ 16,896.65 $ 16,200.00 $ 16,926.26 $ 16,200.00 $ 16,957.12 $ 16,200.00 $ 16,989.30 $ 16,200.00 $ 17,022.85 $ 16,200.00 $ 17,057.82 $ 16,200.00 $ 17,094.28 $ 16,200.00 $ 17,132.28 $ 421,200.00 $ 17,171.90 4.250% $ 170,116.71 0.03811 22,589 Interest Income / Expense for C1 266,499 Invest in Carter for C1 (3,501) Bond discount for C1 Amort of Discount (Premium) $ $ $ $ $ $ $ $ $ $ $ 668.25 696.65 726.26 757.12 789.30 822.85 857.82 894.28 932.28 955.19 8,100.00 total periods=2*20=40 Cash investment on Janauary 1, 20X1 period 1 (interest payment received) period 2 period 3 period 4 period 5 period 6 period 7 period 8 period 9 period 10 period 11 period 12 period 13 period 14 period 15 period 16 period 17 period 18 period 19 period 20 period 21 period 22 period 23 period 24 period 25 period 26 period 27 period 28 period 29 period 30 period 31 period 32 period 33 period 34 period 35 period 36 period 37 period 38 period 39 period 40 Internal Rate Market rate $ 12,834.96 $ 19,835 $ 12,423 ? # from above, need to figure out above 1st $ 48,411.71 $ 11,900.98 $ 7,933.99 total periods=2*10=20 Cash investment on Janauary 1, 20*2 period 1 (interest payment received) period 2 period 3 period 4 period 5 period 6 period 7 period 8 period 9 period 10 period 11 period 12 period 13 period 14 period 15 1/1/20X1 7/1/20X1 1/1/20X2 7/1/20X2 1/1/20X3 7/1/20X3 1/1/20X4 7/1/20X4 1/1/20X5 7/1/20X5 1/1/20X6 7/1/20X6 1/1/20X7 7/1/20X7 1/1/20X8 7/1/20X8 1/1/20X9 7/1/20X9 1/1/20X10 7/1/20X10 1/1/20X11 7/1/20X11 1/1/20X12 7/1/20X12 1/1/20X13 7/1/20X13 1/1/20X14 7/1/20X14 1/1/20X15 7/1/20X15 1/1/20X16 7/1/20X16 1/1/20X17 7/1/20X17 1/1/20X18 7/1/20X18 1/1/20X19 7/1/20X19 1/1/20X20 7/1/20X20 1/1/20X21 ok ok ok Inteste Interest $ PMT Expense $ (741,600.00) $ 36,000.00 $ 35,811.86 $ 36,000.00 $ 35,802.78 $ 36,000.00 $ 35,793.26 $ 36,000.00 $ 35,783.27 $ 36,000.00 $ 35,772.81 $ 36,000.00 $ 35,761.83 $ 36,000.00 $ 35,750.33 $ 36,000.00 $ 35,738.28 $ 36,000.00 $ 35,725.64 $ 36,000.00 $ 35,712.39 $ 36,000.00 $ 35,698.50 $ 36,000.00 $ 35,683.94 $ 36,000.00 $ 35,668.68 $ 36,000.00 $ 35,652.68 $ 36,000.00 $ 35,635.91 $ 36,000.00 $ 35,618.33 $ 36,000.00 $ 35,599.89 $ 36,000.00 $ 35,580.57 $ 36,000.00 $ 35,560.32 $ 36,000.00 $ 35,539.09 $ 36,000.00 $ 35,516.83 $ 36,000.00 $ 35,493.50 $ 36,000.00 $ 35,469.04 $ 36,000.00 $ 35,443.40 $ 36,000.00 $ 35,416.52 $ 36,000.00 $ 35,388.34 $ 36,000.00 $ 35,358.81 $ 36,000.00 $ 35,327.84 $ 36,000.00 $ 35,295.38 $ 36,000.00 $ 35,261.36 $ 36,000.00 $ 35,225.69 $ 36,000.00 $ 35,188.30 $ 36,000.00 $ 35,149.10 $ 36,000.00 $ 35,108.01 $ 36,000.00 $ 35,064.94 $ 36,000.00 $ 35,019.78 $ 36,000.00 $ 34,972.45 $ 36,000.00 $ 34,922.83 $ 36,000.00 $ 34,870.81 $ 756,000.00 $ 34,816.28 4.829% $ 357,652.45 0.03811 s/b $47,589 ok ok 1/1/20X1 7/1/20X1 1/1/20X2 7/1/20X2 1/1/20X3 7/1/20X3 1/1/20X4 7/1/20X4 1/1/20X5 7/1/20X5 1/1/20X6 7/1/20X6 1/1/20X7 7/1/20X7 1/1/20X8 7/1/20X8 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Premium Discount $ 21,600.00 (188.14) $ 21,411.86 (197.22) $ 21,214.64 (206.74) $ 21,007.90 (216.73) $ 20,791.17 (227.19) $ 20,563.97 (238.17) $ 20,325.81 (249.67) $ 20,076.14 (261.72) $ 19,814.42 (274.36) $ 19,540.06 (287.61) $ 19,252.45 (301.50) $ 18,950.95 (316.06) $ 18,634.89 (331.32) $ 18,303.57 (347.32) $ 17,956.25 (364.09) $ 17,592.15 (381.67) $ 17,210.48 (400.11) $ 16,810.37 (419.43) $ 16,390.95 (439.68) $ 15,951.27 (460.91) $ 15,490.35 (483.17) $ 15,007.18 (506.50) $ 14,500.68 (530.96) $ 13,969.72 (556.60) $ 13,413.11 (583.48) $ 12,829.63 (611.66) $ 12,217.98 (641.19) $ 11,576.78 (672.16) $ 10,904.62 (704.62) $ 10,200.01 (738.64) $ 9,461.37 (774.31) $ 8,687.06 (811.70) $ 7,875.35 (850.90) $ 7,024.46 (891.99) $ 6,132.47 (935.06) $ 5,197.40 (980.22) $ 4,217.19 (1,027.55) $ 3,189.63 (1,077.17) $ 2,112.46 (1,129.19) $ 983.27 (1,183.72) $ (21,800.45) Bonds Payable $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 $ 720,000.00 BV of Bonds $ 741,600.00 $ 741,411.86 $ 741,214.64 $ 741,007.90 $ 740,791.17 $ 740,563.97 $ 740,325.81 $ 740,076.14 $ 739,814.42 $ 739,540.06 $ 739,252.45 $ 738,950.95 $ 738,634.89 $ 738,303.57 $ 737,956.25 $ 737,592.15 $ 737,210.48 $ 736,810.37 $ 736,390.95 $ 735,951.27 $ 735,490.35 $ 735,007.18 $ 734,500.68 $ 733,969.72 $ 733,413.11 $ 732,829.63 $ 732,217.98 $ 731,576.78 $ 730,904.62 $ 730,200.01 $ 729,461.37 $ 728,687.06 $ 727,875.35 $ 727,024.46 $ 726,132.47 $ 725,197.40 $ 724,217.19 $ 723,189.63 $ 722,112.46 $ 720,983.27 $ 719,799.55 Amort of Discount (Premium) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Premium Bonds Discount Payable $ (7,000.00) $ 480,000.00 (1,158.83) $ (8,158.83) $ 480,000.00 (1,214.79) $ (9,373.62) $ 480,000.00 (1,273.45) $ (10,647.07) $ 480,000.00 (1,334.95) $ (11,982.02) $ 480,000.00 (1,399.41) $ (13,381.43) $ 480,000.00 (1,466.99) $ (14,848.42) $ 480,000.00 (1,537.83) $ (16,386.25) $ 480,000.00 (1,612.09) $ (17,998.34) $ 480,000.00 (1,689.94) $ (19,688.28) $ 480,000.00 (1,771.55) $ (21,459.83) $ 480,000.00 (1,857.10) $ (23,316.92) $ 480,000.00 (1,946.77) $ (25,263.70) $ 480,000.00 (2,040.78) $ (27,304.48) $ 480,000.00 (2,139.33) $ (29,443.82) $ 480,000.00 (2,242.64) $ (31,686.46) $ 480,000.00 BV of Bonds $ 473,000.00 $ 471,841.17 $ 470,626.38 $ 469,352.93 $ 468,017.98 $ 466,618.57 $ 465,151.58 $ 463,613.75 $ 462,001.66 $ 460,311.72 $ 458,540.17 $ 456,683.08 $ 454,736.30 $ 452,695.52 $ 450,556.18 $ 448,313.54 Bonds Payable BV of Bonds Interest Rate Semiannual Internal Rate Discount $ $ 720,000.00 741,600.00 10% 2 4.829% see B25 3% Bonds Payable BV of Bonds Interest Rate Semiannual Internal Rate Discount a - premium on bonds payable a - gain on bond retirement b premium on bonds payable b - interest income b-investment in able company bonds b - interest expense b - investment in able co b - NCI in NA of able co Inteste Interest $ PMT Expense $ (473,000.00) $ 24,000.00 $ 22,841.17 $ 24,000.00 $ 22,785.21 $ 24,000.00 $ 22,726.55 $ 24,000.00 $ 22,665.05 $ 24,000.00 $ 22,600.59 $ 24,000.00 $ 22,533.01 $ 24,000.00 $ 22,462.17 $ 24,000.00 $ 22,387.91 $ 24,000.00 $ 22,310.06 $ 24,000.00 $ 22,228.45 $ 24,000.00 $ 22,142.90 $ 24,000.00 $ 22,053.23 $ 24,000.00 $ 21,959.22 $ 24,000.00 $ 21,860.67 $ 24,000.00 $ 21,757.36 Amort of Discount (Premium) $ $ 480,000.00 473,000.00 10% 2 4.829% see B25 2% period 16 period 17 period 18 period 19 period 20 period 21 period 22 period 23 period 24 period 25 period 26 period 27 period 28 period 29 period 30 period 31 period 32 period 33 period 34 period 35 period 36 period 37 period 38 period 39 period 40 Internal Rate Market rate $ $ $ 1/1/20X9 7/1/20X9 1/1/20X10 7/1/20X10 1/1/20X11 7/1/20X11 1/1/20X12 7/1/20X12 1/1/20X13 7/1/20X13 1/1/20X14 7/1/20X14 1/1/20X15 7/1/20X15 1/1/20X16 7/1/20X16 1/1/20X17 7/1/20X17 1/1/20X18 7/1/20X18 1/1/20X19 7/1/20X19 1/1/20X20 7/1/20X20 1/1/20X21 30,261 312,012 (7,988) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 504,000.00 5.086% 0.03811 $ 21,649.06 $ 21,535.53 $ 21,416.53 $ 21,291.77 $ 21,160.99 $ 21,023.89 $ 20,880.18 $ 20,729.52 $ 20,571.59 $ 20,406.03 $ 20,232.48 $ 20,050.54 $ 19,859.83 $ 19,659.90 $ 19,450.31 $ 19,230.61 $ 19,000.29 $ 18,758.86 $ 18,505.76 $ 18,240.45 $ 17,962.32 $ 17,670.76 $ 17,365.12 $ 22,310.06 $ 22,228.45 $ 836,504.36 Interest Income / Expense for C1 Invest in Carter for C1 Bond discount for C1 $ (2,350.94) $ (2,464.47) $ (2,583.47) $ (2,708.23) $ (2,839.01) $ (2,976.11) $ (3,119.82) $ (3,270.48) $ (3,428.41) $ (3,593.97) $ (3,767.52) $ (3,949.46) $ (4,140.17) $ (4,340.10) $ (4,549.69) $ (4,769.39) $ (4,999.71) $ (5,241.14) $ (5,494.24) $ (5,759.55) $ (6,037.68) $ (6,329.24) $ (6,634.88) $ (1,689.94) $ 19,688.28 $ (102,035.81) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ (34,037.40) (36,501.86) (39,085.34) (41,793.57) (44,632.58) (47,608.69) (50,728.51) (53,998.99) (57,427.40) (61,021.37) (64,788.89) (68,738.35) (72,878.52) (77,218.63) (81,768.32) (86,537.71) (91,537.41) (96,778.56) (102,272.79) (108,032.35) (114,070.03) (120,399.27) (127,034.15) (19,688.28) - $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 445,962.60 443,498.14 440,914.66 438,206.43 435,367.42 432,391.31 429,271.49 426,001.01 422,572.60 418,978.63 415,211.11 411,261.65 407,121.48 402,781.37 398,231.68 393,462.29 388,462.59 383,221.44 377,727.21 371,967.65 365,929.97 359,600.73 352,965.85 460,311.72 480,000.00 total periods=2*10=20 Cash investment on Janauary 1, 20X2 period 1 (interest payment received) period 2 period 3 period 4 period 5 period 6 period 7 period 8 period 9 period 10 period 11 period 12 period 13 period 14 period 15 period 16 period 17 period 18 period 19 period 20 Internal Rate Market rate Inteste Interest $ PMT Expense $ (254,000.00) $ 9,800.00 $ 9,489.44 $ 9,800.00 $ 9,477.84 $ 9,800.00 $ 9,465.80 $ 9,800.00 $ 9,453.32 $ 9,800.00 $ 9,440.36 $ 9,800.00 $ 9,426.93 $ 9,800.00 $ 9,412.99 $ 9,800.00 $ 9,398.53 $ 9,800.00 $ 9,383.53 $ 9,800.00 $ 9,367.97 $ 9,800.00 $ 9,351.83 $ 9,800.00 $ 9,335.09 $ 9,800.00 $ 9,317.72 $ 9,800.00 $ 9,299.70 $ 9,800.00 $ 9,281.01 $ 9,800.00 $ 9,261.62 $ 9,800.00 $ 9,241.51 $ 9,800.00 $ 9,220.64 $ 9,800.00 $ 9,199.00 $ 254,800.00 $ 9,176.54 3.736% $ 187,001.38 0.03811 Amort of Discount (Premium) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Premium Discount $ 9,000.00 (310.56) $ 8,689.44 (322.16) $ 8,367.28 (334.20) $ 8,033.08 (346.68) $ 7,686.39 (359.64) $ 7,326.76 (373.07) $ 6,953.69 (387.01) $ 6,566.68 (401.47) $ 6,165.21 (416.47) $ 5,748.74 (432.03) $ 5,316.71 (448.17) $ 4,868.54 (464.91) $ 4,403.63 (482.28) $ 3,921.35 (500.30) $ 3,421.05 (518.99) $ 2,902.07 (538.38) $ 2,363.69 (558.49) $ 1,805.19 (579.36) $ 1,225.84 (601.00) $ 624.83 (624.83) $ (9,000.00) Bonds Payable $ 245,000.00 $ 245,000.00 $ 245,000.00 $ 245,000.00 $ 245,000.00 $ 245,000.00 $ 245,000.00 $ 245,000.00 $ 245,000.00 $ 245,000.00 $ 245,000.00 $ 245,000.00 $ 245,000.00 $ 245,000.00 $ 245,000.00 $ 245,000.00 $ 245,000.00 $ 245,000.00 $ 245,000.00 $ 245,000.00 $ 245,000.00 BV of Bonds $ 254,000.00 $ 253,689.44 $ 253,367.28 $ 253,033.08 $ 252,686.39 $ 252,326.76 $ 251,953.69 $ 251,566.68 $ 251,165.21 $ 250,748.74 $ 250,316.71 $ 249,868.54 $ 249,403.63 $ 248,921.35 $ 248,421.05 $ 247,902.07 $ 247,363.69 $ 246,805.19 $ 246,225.84 $ 245,624.83 $ 245,000.00 Bonds Payable BV of Bonds Interest Rate Semiannual Internal Rate $ $ 245,000.00 254,000.00 8% 2 3.736% see B25 Inteste Interest $ PMT Expense $ (705,600.00) $ 28,800.00 $ 29,988.00 $ 28,800.00 $ 30,038.49 $ 28,800.00 $ 30,091.13 $ 28,800.00 $ 30,146.00 $ 28,800.00 $ 30,203.20 $ 28,800.00 $ 30,262.84 $ 28,800.00 $ 30,325.01 $ 28,800.00 $ 30,389.82 $ 28,800.00 $ 30,457.39 $ 748,800.00 $ 30,527.83 4.250% $ 302,429.71 0.03811 total periods=2*10=20 Cash investment on Janauary 1, 20*2 period 1 (interest payment received) period 2 period 3 period 4 period 5 period 6 period 7 period 8 period 9 period 10 Internal Rate Market rate $ $ $ $ total periods=2*10=20 Cash investment on Janauary 1, 20*2 period 1 (interest payment received) period 2 period 3 period 4 period 5 period 6 period 7 period 8 period 9 period 10 Internal Rate Market rate $ $ $ 20,079.04 40,158 473,776 6,224 Amort of Discount (Premium) $ $ $ $ $ $ $ $ $ $ $ 1,188.00 1,238.49 1,291.13 1,346.00 1,403.20 1,462.84 1,525.01 1,589.82 1,657.39 1,698.12 14,400.00 Premium Bonds Discount Payable $ (14,400.00) $ 720,000.00 $ (13,212.00) $ 720,000.00 $ (11,973.51) $ 720,000.00 $ (10,682.38) $ 720,000.00 $ (9,336.39) $ 720,000.00 $ (7,933.18) $ 720,000.00 $ (6,470.34) $ 720,000.00 $ (4,945.33) $ 720,000.00 $ (3,355.51) $ 720,000.00 $ (1,698.12) $ 720,000.00 $ - $ 720,000.00 BV of Bonds $ 705,600.00 $ 706,788.00 $ 708,026.49 $ 709,317.62 $ 710,663.61 $ 712,066.82 $ 713,529.66 $ 715,054.67 $ 716,644.49 $ 718,301.88 $ 720,000.00 Premium Bonds Discount Payable $ (9,600.00) $ 480,000.00 $ (8,808.00) $ 480,000.00 $ (7,982.34) $ 480,000.00 $ (7,121.59) $ 480,000.00 $ (6,224.26) $ 480,000.00 $ (5,288.79) $ 480,000.00 $ (4,313.56) $ 480,000.00 $ (3,296.89) $ 480,000.00 $ (2,237.01) $ 480,000.00 $ (1,132.08) $ 480,000.00 $ - $ 480,000.00 BV of Bonds $ 470,400.00 $ 471,192.00 $ 472,017.66 $ 472,878.41 $ 473,775.74 $ 474,711.21 $ 475,686.44 $ 476,703.11 $ 477,762.99 $ 478,867.92 $ 480,000.00 Bonds Payable BV of Bonds Interest Rate Semiannual Internal Rate Discount $ $ 720,000.00 705,600.00 8% 2 4.250% see B25 2% Bonds Payable BV of Bonds Interest Rate Semiannual Internal Rate Discount $ $ 480,000.00 470,400.00 8% 2 4.250% see B25 2% A Interest Income / Expense for C1 Invest in Carter for C1 Bond discount for C1 Inteste Interest $ PMT Expense $ (470,400.00) $ 19,200.00 $ 19,992.00 $ 19,200.00 $ 20,025.66 $ 19,200.00 $ 20,060.75 $ 19,200.00 $ 20,097.33 $ 19,200.00 $ 20,135.47 $ 19,200.00 $ 20,175.23 $ 19,200.00 $ 20,216.67 $ 19,200.00 $ 20,259.88 $ 19,200.00 $ 20,304.93 $ 499,200.00 $ 20,351.89 4.250% $ 201,619.81 0.03811 26,772 Interest Income / Expense for C1 315,850 Invest in Carter for C1 (4,150) Bond discount for C1 Amort of Discount (Premium) $ $ $ $ $ $ $ $ $ $ $ 792.00 825.66 860.75 897.33 935.47 975.23 1,016.67 1,059.88 1,104.93 1,132.08 9,600.00 total periods=2*20=40 Cash investment on Janauary 1, 20X1 period 1 (interest payment received) period 2 period 3 period 4 period 5 period 6 period 7 period 8 period 9 period 10 period 11 period 12 period 13 period 14 period 15 period 16 period 17 period 18 period 19 period 20 period 21 period 22 period 23 period 24 period 25 period 26 period 27 period 28 period 29 period 30 period 31 period 32 period 33 period 34 period 35 period 36 period 37 period 38 period 39 period 40 Internal Rate Market rate $ $ $ $ manually calculate $ $ total periods=2*20=20 Cash investment on Janauary 1, 20*2 period 1 (interest payment received) period 2 period 3 period 4 period 5 period 6 period 7 period 8 period 9 period 10 Internal Rate Market rate 1/1/20X1 7/1/20X1 1/1/20X2 7/1/20X2 1/1/20X3 7/1/20X3 1/1/20X4 7/1/20X4 1/1/20X5 7/1/20X5 1/1/20X6 7/1/20X6 1/1/20X7 7/1/20X7 1/1/20X8 7/1/20X8 1/1/20X9 7/1/20X9 1/1/20X10 7/1/20X10 1/1/20X11 7/1/20X11 1/1/20X12 7/1/20X12 1/1/20X13 7/1/20X13 1/1/20X14 7/1/20X14 1/1/20X15 7/1/20X15 1/1/20X16 7/1/20X16 1/1/20X17 7/1/20X17 1/1/20X18 7/1/20X18 1/1/20X19 7/1/20X19 1/1/20X20 7/1/20X20 1/1/20X21 Inteste Interest $ PMT Expense $ (896,100.00) $ 34,800.00 $ 34,517.77 $ 34,800.00 $ 34,506.90 $ 34,800.00 $ 34,495.61 $ 34,800.00 $ 34,483.89 $ 34,800.00 $ 34,471.71 $ 34,800.00 $ 34,459.06 $ 34,800.00 $ 34,445.93 $ 34,800.00 $ 34,432.29 $ 34,800.00 $ 34,418.13 $ 34,800.00 $ 34,403.42 $ 34,800.00 $ 34,388.14 $ 34,800.00 $ 34,372.28 $ 34,800.00 $ 34,355.80 $ 34,800.00 $ 34,338.69 $ 34,800.00 $ 34,320.92 $ 34,800.00 $ 34,302.47 $ 34,800.00 $ 34,283.30 $ 34,800.00 $ 34,263.40 $ 34,800.00 $ 34,242.73 $ 34,800.00 $ 34,221.26 $ 34,800.00 $ 34,198.97 $ 34,800.00 $ 34,175.82 $ 34,800.00 $ 34,151.77 $ 34,800.00 $ 34,126.80 $ 34,800.00 $ 34,100.87 $ 34,800.00 $ 34,073.94 $ 34,800.00 $ 34,045.97 $ 34,800.00 $ 34,016.93 $ 34,800.00 $ 33,986.76 $ 34,800.00 $ 33,955.44 $ 34,800.00 $ 33,922.91 $ 34,800.00 $ 33,889.12 $ 34,800.00 $ 33,854.03 $ 34,800.00 $ 33,817.59 $ 34,800.00 $ 33,779.75 $ 34,800.00 $ 33,740.45 $ 34,800.00 $ 33,699.64 $ 34,800.00 $ 33,657.25 $ 34,800.00 $ 33,613.23 $ 904,800.00 $ 33,567.52 3.852% $ 344,634.70 0.03811 Amort of Discount (Premium) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Premium Discount $ 26,100.00 (282.23) $ 25,817.77 (293.10) $ 25,524.67 (304.39) $ 25,220.28 (316.11) $ 24,904.17 (328.29) $ 24,575.88 (340.94) $ 24,234.94 (354.07) $ 23,880.87 (367.71) $ 23,513.16 (381.87) $ 23,131.29 (396.58) $ 22,734.70 (411.86) $ 22,322.85 (427.72) $ 21,895.12 (444.20) $ 21,450.92 (461.31) $ 20,989.61 (479.08) $ 20,510.53 (497.53) $ 20,013.00 (516.70) $ 19,496.30 (536.60) $ 18,959.69 (557.27) $ 18,402.42 (578.74) $ 17,823.68 (601.03) $ 17,222.65 (624.18) $ 16,598.47 (648.23) $ 15,950.24 (673.20) $ 15,277.04 (699.13) $ 14,577.92 (726.06) $ 13,851.86 (754.03) $ 13,097.83 (783.07) $ 12,314.76 (813.24) $ 11,501.52 (844.56) $ 10,656.96 (877.09) $ 9,779.87 (910.88) $ 8,868.99 (945.97) $ 7,923.02 (982.41) $ 6,940.62 (1,020.25) $ 5,920.37 (1,059.55) $ 4,860.82 (1,100.36) $ 3,760.46 (1,142.75) $ 2,617.72 (1,186.77) $ 1,430.95 (1,232.48) $ (25,901.53) Bonds Payable $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 $ 870,000.00 BV of Bonds $ 896,100.00 $ 895,817.77 $ 895,524.67 $ 895,220.28 $ 894,904.17 $ 894,575.88 $ 894,234.94 $ 893,880.87 $ 893,513.16 $ 893,131.29 $ 892,734.70 $ 892,322.85 $ 891,895.12 $ 891,450.92 $ 890,989.61 $ 890,510.53 $ 890,013.00 $ 889,496.30 $ 888,959.69 $ 888,402.42 $ 887,823.68 $ 887,222.65 $ 886,598.47 $ 885,950.24 $ 885,277.04 $ 884,577.92 $ 883,851.86 $ 883,097.83 $ 882,314.76 $ 881,501.52 $ 880,656.96 $ 879,779.87 $ 878,868.99 $ 877,923.02 $ 876,940.62 $ 875,920.37 $ 874,860.82 $ 873,760.46 $ 872,617.72 $ 871,430.95 $ 870,198.47 Inteste Interest $ PMT Expense $ (574,000.00) $ 23,200.00 $ 22,110.48 $ 23,200.00 $ 22,068.51 $ 23,200.00 $ 22,024.93 $ 23,200.00 $ 21,979.66 $ 23,200.00 $ 21,932.66 $ 23,200.00 $ 21,883.84 $ 23,200.00 $ 21,833.14 $ 23,200.00 $ 21,780.49 $ 23,200.00 $ 21,725.81 $ 603,200.00 $ 21,669.02 4.128% $ 219,008.53 0.03811 Amort of Discount (Premium) $ $ $ $ $ $ $ $ $ $ $ Premium Bonds Discount Payable $ (6,000.00) $ 580,000.00 (1,089.52) $ (7,089.52) $ 580,000.00 (1,131.49) $ (8,221.01) $ 580,000.00 (1,175.07) $ (9,396.08) $ 580,000.00 (1,220.34) $ (10,616.42) $ 580,000.00 (1,267.34) $ (11,883.76) $ 580,000.00 (1,316.16) $ (13,199.93) $ 580,000.00 (1,366.86) $ (14,566.79) $ 580,000.00 (1,419.51) $ (15,986.30) $ 580,000.00 (1,474.19) $ (17,460.49) $ 580,000.00 17,460.49 $ - $ 580,000.00 6,000.00 BV of Bonds $ 574,000.00 $ 572,910.48 $ 571,778.99 $ 570,603.92 $ 569,383.58 $ 568,116.24 $ 566,800.07 $ 565,433.21 $ 564,013.70 $ 562,539.51 $ 580,000.00 $ $ 870,000.00 896,100.00 8% 2 3.852% see B25 3% Bonds Payable BV of Bonds Interest Rate Semiannual Internal Rate Discount 15,156.47 $ 15,157.00 a - premium on bonds payable 21,156 $ 21,157 a - gain on bond retirement 14,597 ok b premium on bonds payable (16,603) b - interest income b-investment in able company bonds b - interest expense [(H15-E15) + (H16-E16)]*2/3 14,809.53 b - investment in able co watch % of ownership 6,346.94 b - NCI in NA of able co watch % of ownership Bonds Payable BV of Bonds Interest Rate Semiannual Internal Rate Discount $ $ 580,000.00 574,000.00 8% 2 3.852% see B25 2% $ $ $ 29,336 379,589 (7,078) Interest Income / Expense for C1 Invest in Carter for C1 Bond discount for C1