On 1/1/22 Big issued $100,000 of 11%, 20 year bonds at 104,000. The bonds are dated 1/1/22, and pay interest each 12/31.

You'll want to open an Excel spreadsheet to do this.

1. Using Excel's IRR function, what is the effective rate on this bond issue? Round the answer to 2 decimal places (answer in format "xx.xx%").

2. Set up an amortization table using the effective interest method. For your amortization table, USE THE ROUNDED OFF VALUE FROM YOUR ANSWER TO QUESTION #1!!!!!!

If you use anything OTHER THAN the rate from question 1, the answers will be "wrong" compared to the answer key!!!!

DON'T use the cell reference where the answer to the IRR function is. Even if you format the cell to only 2 decimal places, Excel's memory will use the unrounded #!!!

What is the interest expense for 2022? (xx,xxx.xx) 3. Set up an amortization table using the effective interest method. For your amortization table, USE THE ROUNDED OFF VALUE FROM YOUR ANSWER TO QUESTION #1!!!!!!

If you use anything OTHER THAN the rate from question 1, the answers will be "wrong" compared to the answer key!!!!

What is the interest expense for 2023? (xx,xxx.xx)

4. What is the remaining "premium on bonds" at the end of 2025? (to the nearest penny; xx,xxx.xx)

5. What is the balance in the "premium on bonds" at the beginning of 2030? (to the nearest penny; xx,xxx.xx)