Issuance 1 Traditional Debt Issue Issue bonds with a face value of $34,578,873, a stated rate of 2.5% due in 10 years. Interest is paid semi-annually, the debt is expected to issue at a discount with total issue price of $30,200,000, and the underwriter will charge $200,000 to take the issue to market. The journal entry at issuance would be:

Cash		30,000,000
Unamortized BIC		200,000
Discount on B/P		4,378,873
	Bonds Payable		34,578,87

Issuance 2 Convertible Bond Issue Issue $28 million in convertible bonds with a stated rate of 2.5% and conversion price of $200. Interest is paid semi-annually, the issue price is expected to be $30,345,000 million, and the underwriter will charge $345,000 to take the issue to market. This is a 10-year issuance. The journal entry at issuance would be:

Cash		30,000,000
Unamortized BIC		345,000
	Premium on B/P		2,345,000
	Bonds Payable		28,000,000

Issuance 3 Lump sum sale of bonds with detachable warrants Issue $28 million in $1,000 2.5% bonds each with ten detachable warrants. The exercise price for each warrant is $13. Interest is paid semi-annually, the bonds would issue at face value without the detachable warrants. The total issue price for the lump sum sale is expected to be $30,350,00, and the underwriter will charge $350,000 to take the issue to market. This is a 10-year issuance. The journal entry at issuance would be:

Cash		30,000,000
Unamortized BIC		350,000
	PIC - Warrants		2,350,000
	Bonds Payable		28,000,000

Questions:

1. Calculate the Present Value (PV) & Payment (PMT) for Issuance 1

2. Calculate the Present Value (PV) & Payment (PMT) for Issuance 2

3. Calculate the Present Value (PV) & Payment (PMT) for Issuance 3