Need part 2 answered - Deals with straightline amortization and effective interest amortization

"$600,000 face value, 5%, 10 years to maturity issued on March 1, 2015. Interest payment made semi-annually on August 31st.." Information is found on sheet 1

Calculate the issue price of the bonds

Put your name here: Elana Stelter The use of a time line is important when determining a carrying value since the carrying value changes as "n" declines. However, you should be able to calculate the following carrying values without using a complete amortization table. Using an amortization table in Excel might make the process easier, but you will not have that option on an exam. Bond 1: $400,000 face value, 3%, 20 years to maturity issued on January 1, 2015. Interest payment made semi-annually on June 30th and December 31st. The yield rate is 2.5%. Calculate the issue price of the bonds. $431,327.00 Calculate the carrying value of the bonds on the following dates assuming effective interest amortization is used: 1-Jan-19 $424,955.43 30-Jun-27 $413,830.33 1-Oct-29 31-Dec-34 $400,456.73 Calculate the carrying value of the bonds on the following dates assuming straight line amortization is used: 1-Jan-19 $423,038.98 30-Jun-27 $411,519.58 1-Oct-29 31-Dec-34 $400,000.18 These bonds are retired on June 30, 2027 at 102. Assuming the company used effective interest amortiztion to amortize the premium or discount, calculate the gain or (loss) on this early retirement. Bond 2: $600,000 face value, 5%, 10 years to maturity issued on March 1, 2015. Interest payment made semi-annually on August 31st and February 28th. The yield rate is 4%. Calculate the issue price of the bonds. Calculate the carrying value of the bonds on the following dates assuming effective interest amortization is used: 1-Mar-17 1-Sep-20 1-Dec-22 28-Feb-24 Calculate the carrying value of the bonds on the following dates assuming straight line amortization is used: 1-Mar-17 1-Sep-20 1-Dec-22 28-Feb-24 These bonds are retired on June 30, 2021 at 102. Assuming the company used straight line interest amortiztion to amortize the premium or discount, calculate the gain or (loss) on this early retirement. Date Cash Paid 1/1/2015 7/30/2015 12/31/2015 7/30/2016 12/31/2016 7/30/2017 12/31/2017 7/30/2018 12/31/2018 7/30/2019 12/31/2019 7/30/2020 12/31/2020 7/30/2021 12/31/2021 7/30/2022 12/31/2022 7/30/2023 12/31/2023 7/30/2024 12/31/2024 7/30/2025 12/31/2025 7/30/2026 12/31/2026 7/30/2027 12/31/2027 7/30/2028 12/31/2028 7/30/2029 12/31/2029 7/30/2030 12/31/2030 7/30/2031 12/31/2031 7/30/2032 12/31/2032 7/30/2033 12/31/2033 7/30/2034 12/31/2034 1/1/2035 Interest Expense 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 5383.98225 5383.98225 5376.282028125 5368.4855534766 5360.591622895 5352.5990181812 5344.5065059085 5336.3128372323 5328.0167476977 5319.616957044 5311.112169007 5302.5010711196 5293.7823345086 5284.95461369 5276.0165463611 5266.9667531906 5257.8038376055 5248.5263855755 5239.1329653952 5229.6221274627 5219.992404056 5210.2423091067 5200.3703379705 5190.3749671951 5180.2546542851 5170.0078374636 5159.6329354319 5149.1283471248 5138.4924514639 5127.7236071072 5116.820152196 5105.7804040985 5094.6026591497 5083.2851923891 5071.8262572939 5060.2240855101 5048.476886579 5036.5828476612 5024.540133257 5012.3468849227 Premium Amortized 608.42 616.01775 623.717971875 631.5144465234 639.408377105 647.4009818188 655.4934940915 663.6871627677 671.9832523023 680.383042956 688.887830993 697.4989288804 706.2176654914 715.0453863101 723.9834536389 733.0332468094 742.1961623945 751.4736144245 760.8670346048 770.3778725373 780.0075959441 789.7576908934 799.6296620295 809.6250328049 819.7453457149 829.9921625364 840.3670645681 850.8716528752 861.5075485361 872.2763928928 883.179847804 894.2195959015 905.3973408503 916.7148076109 928.1737427061 939.7759144899 951.523113421 963.4171523388 975.459866743 987.6531150773 Carrying Amount of Bonds 430,718.58 430,718.58 430102.56225 429478.844278125 428847.329831602 428207.921454497 427560.520472678 426905.026978586 426241.339815819 425569.356563516 424888.97352056 424200.085689567 423502.586760687 422796.369095196 422081.323708886 421357.340255247 420624.307008437 419882.110846043 419130.637231618 418369.770197013 417599.392324476 416819.384728532 416029.627037639 415229.997375609 414420.372342804 413600.626997089 412770.634834553 411930.267769985 411079.39611711 410217.888568573 409345.612175681 408462.432327877 407568.212731975 406662.815391125 405746.100583514 404817.926840808 403878.150926318 402926.627812897 401963.210660558 400987.750793815 400000.097678738 Date 1/1/2015 7/30/2015 12/31/2015 7/30/2016 12/31/2016 7/30/2017 12/31/2017 7/30/2018 12/31/2018 7/30/2019 12/31/2019 7/30/2020 12/31/2020 7/30/2021 12/31/2021 7/30/2022 12/31/2022 7/30/2023 12/31/2023 7/30/2024 12/31/2024 7/30/2025 12/31/2025 7/30/2026 12/31/2026 7/30/2027 12/31/2027 7/30/2028 12/31/2028 7/30/2029 12/31/2029 7/30/2030 12/31/2030 7/30/2031 12/31/2031 7/30/2032 12/31/2032 7/30/2033 12/31/2033 7/30/2034 12/31/2034 1/1/2035 Cash Paid Interest Expense 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 6767.96 Premium Amortized Carrying Amount of Bonds 430,718.58 767.96 429,950.62 767.96 429,182.66 767.96 428,414.70 767.96 427,646.74 767.96 426,878.78 767.96 426,110.82 767.96 425,342.86 767.96 424,574.90 767.96 423,806.94 767.96 423,038.98 767.96 422,271.02 767.96 421,503.06 767.96 420,735.10 767.96 419,967.14 767.96 419,199.18 767.96 418,431.22 767.96 417,663.26 767.96 416,895.30 767.96 416,127.34 767.96 415,359.38 767.96 414,591.42 767.96 413,823.46 767.96 413,055.50 767.96 412,287.54 767.96 411,519.58 767.96 410,751.62 767.96 409,983.66 767.96 409,215.70 767.96 408,447.74 767.96 407,679.78 767.96 406,911.82 767.96 406,143.86 767.96 405,375.90 767.96 404,607.94 767.96 403,839.98 767.96 403,072.02 767.96 402,304.06 767.96 401,536.10 767.96 400,768.14 767.96 400,000.18 431327- Date Cash Paid Interest Expense Premium Amortized Carrying Amount of Bonds 1/1/2015 649,054.30 7/30/2015 15000 12981.086 608.42 430,718.58 12/31/2015 15000 8614.3716 6385.6284 424,332.95 7/30/2016 15000 8486.659032 6513.340968 417,819.61 12/31/2016 15000 8356.39221264 6643.60778736 411,176.00 7/30/2017 15000 8223.5200568928 6776.4799431072 404,399.52 12/31/2017 15000 8087.9904580307 6912.0095419694 397,487.51 7/30/2018 15000 7949.7502671913 7050.2497328087 390,437.26 12/31/2018 15000 7808.7452725351 7191.2547274649 383,246.01 7/30/2019 15000 7664.9201779858 7335.0798220142 375,910.93 12/31/2019 15000 7518.2185815455 7481.7814184545 368,429.15 7/30/2020 15000 7368.5829531764 7631.4170468236 360,797.73 12/31/2020 15000 7215.95461224 7784.0453877601 353,013.69 7/30/2021 15000 7060.2737044848 7939.7262955153 345,073.96 12/31/2021 15000 6901.4791785745 8098.5208214256 336,975.44 7/30/2022 15000 6739.5087621459 8260.4912378541 328,714.95 12/31/2022 15000 6574.2989373889 8425.7010626112 320,289.25 7/30/2023 15000 6405.7849161366 8594.2150838634 311,695.03 12/31/2023 15000 6233.9006144594 8766.0993855406 302,928.93 7/30/2024 15000 6058.5786267486 8941.4213732515 293,987.51 12/31/2024 15000 5879.7501992835 9120.2498007165 284,867.26 7/30/2025 15000 5697.3452032692 9302.6547967308 275,564.61 12/31/2025 15000 5511.2921073346 9488.7078926654 266,075.90 7/30/2026 15000 5321.5179494813 9678.4820505187 256,397.42 12/31/2026 15000 5127.9483084709 9872.0516915291 246,525.36 7/30/2027 15000 4930.5072746403 10069.4927253597 236,455.87 12/31/2027 15000 4729.1174201331 10270.8825798669 226,184.99 7/30/2028 15000 4523.6997685358 10476.3002314642 215,708.69 12/31/2028 15000 4314.1737639065 10685.8262360935 205,022.86 7/30/2029 15000 4100.4572391846 10899.5427608154 194,123.32 12/31/2029 15000 3882.4663839683 11117.5336160317 183,005.79 7/30/2030 15000 3660.1157116477 11339.8842883523 171,665.90 12/31/2030 15000 3433.3180258806 11566.6819741194 160,099.22 7/30/2031 15000 3201.9843863983 11798.0156136017 148,301.20 12/31/2031 15000 2966.0240741262 12033.9759258738 136,267.23 7/30/2032 15000 2725.3445556088 12274.6554443913 123,992.57 12/31/2032 15000 2479.8514467209 12520.1485532791 111,472.42 7/30/2033 15000 2229.4484756553 12770.5515243447 98,701.87 12/31/2033 15000 1974.0374451685 13025.9625548316 85,675.91 7/30/2034 15000 1713.5181940718 13286.4818059282 72,389.43 12/31/2034 15000 1447.7885579533 13552.2114420468 58,837.22 1/1/2035