In sheet1_amortization schedule, you will find information about a 10-year bond with face amount $100,000 and coupon rate 9%. The bond is issued on Jan. 1, Year 1, and pays interests semiannually on June 30 and Dec. 31. The market interest rate at the time of issuance is 7%. Please calculate the cash interest paid semiannually and the bond issue price, and complete the amortization schedule. Put in the correct formulas, not just the numbers. The pv function in Excel will calculate present values for you.

In sheet2_sensitivity, you will put in numbers, not formulas. You can obtain these numbers from sheet1_amortization schedule by changing the market interest rate at issuance. Please remember to change the market interest rate back to 7% in sheet1_amortization schedule before submission

Calibri 14 Merge & Center - $ % 8.99 Conditional For Formatting" To SO Copy * Format Painter Clipboard Alignment Number Font 7% B7 X for 1 Bonds Amortization Schedule $100,000 3 Face Amount 4 Number of years 5 Coupon rate 6 Number of Interest Paid per year 7 Market interest rate at issuance 9% 7% 9 cash interest paid semiannually 10 Bond Issue Price Cash Interest Effective Interest Increase (Decrease) in Balance Outstanding Balance 14 Date 15 Jan. 1, Year 1 16 June 30, Year 1 17 Dec. 31, Year 1 18 June 30, Year 2 19 Dec. 31, Year 2 20 June 30, Year 3 21 Dec. 31, Year 3 22 June 30, Year 4 23 Dec 31, Year 4 24 June 30, Year 5 25 Dec 31, Year 5 26 June 30, Year 6 27 Dec 31, Year 6 28 June 30, Year 7 29 Dec 31, Year 7 30 June 30, Year 8 31 Dec 31, Year 8 32 June 30, Year 9 33 Dec. 31, Year 9 34 June 30, Year 10 35 Dec. 31, Year 10 36 total 37 sheet1 amortization schedule Sheet2_sensitivity 100 e 03 File Data Review View Tell me what you want to - General Home Insert Page Layout Formulas * Cut Calibri 11 - Copy inter BTU. 3- A *Format Painter Clipboard Font Wrap Text Merge a Center - Paste 3 $ -% 8. Conditiona Formatting Alignment x fe Outstanding balance of bonds at Dec. 31, Year 7 1 Sensitivity Analysis Bond Issuance Price Outstanding balance of bonds at Dec. 31, Year 7 3 When the market interest rate at issuance is 8% 4 When the market interest rate at issuance is 11% Sheet1 amortization schedule Ready Shed 2 sensitivity 07