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How to calculate in Excel? Bond Discount Problem: On January 1, 2017, Waterfall Lodge & Amusement Park issued $6,000,000 of 6% bonds, due in 10

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Bond Discount Problem:On January 1, 2017, Waterfall Lodge & Amusement Park issued $6,000,000 of 6% bonds, due in 10 years. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually on June 30 and December 31 each year.

Face amount $ 6,000,000.00
Interest payment $ 180,000.00
Market interest rate per period 3.5%
Number of periods 20
Issue price $ 5,573,627.90
Date Cash Paid for Interest Interest Expense Increase in Carrying Value Carrying Value (End of Period)
1/1/2017 ------- ------- ------- $ 5,573,627.90
6/30/2017 $ 180,000.00
12/31/2017 $ 180,000.00
6/30/2018 $ 180,000.00
12/31/2018 $ 180,000.00
6/30/2019 $ 180,000.00
12/31/2019 $ 180,000.00
6/30/2020 $ 180,000.00
12/31/2020 $ 180,000.00
6/30/2021 $ 180,000.00
12/31/2021 $ 180,000.00
6/30/2022 $ 180,000.00
12/31/2022 $ 180,000.00
6/30/2023 $ 180,000.00
12/31/2023 $ 180,000.00
6/30/2024 $ 180,000.00
12/31/2024 $ 180,000.00
6/30/2025 $ 180,000.00
12/31/2025 $ 180,000.00
6/30/2026 $ 180,000.00
12/31/2026 $ 180,000.00

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