Memo: Fair Value Option. Background You have recently been hired at Caterpillar as an accountant. Your company is about to issue a new bond for $20,000,000 to fund a plant expansion and Chris Keen, your supervisor is wondering if your company should consider using the fair value option for accounting for the bond. Chris has recently been to a continuing education program where the fair value option for financial instruments was discussed. Chris has asked you to investigate. Bond term is 10 years, stated rate is 2.5%. Projected issuance date: 1/1/2016. Market rate on date of issuance: 1.25%. Projected market rates for the next 10 years, at the end of the year: 2016 1.50% 2017 1.75% 2018 2.00% 2019 2.50% 2020 2.75% 2021 3.00% 2022 3.40% 2023 2.90% 2024 2.70% 2025 2.25%

Question: How do I calculate this using the fair value option? and present it in a table