On January 1, 2020, Sanchez Corp. Issues $50 million face value bonds with an 8% coupon rate. The interest is paid semi-annually for a term of five years. Investors want a 10% rate of return for bonds of equivalent risk. A. Compute the bond price at 1/1/2020. 50,000,000.08=4,000,00052=10periodsPV=4,000,000/(1+0.10)10PV=4,000,000/2.59PV=1,544,401.54 B. Prepare an amortization table for the bond through maturity. You may use Excel. Label the columns! C. So at the end of the third year after the interest payment date, the market rate for bonds of equivalent risk is now 12%. How much would Sanchez pay to redeem these bonds on the open market (i.e., what is the price for all the bonds right now)? D. Would this be a gain or a loss on the books? Write the entry to redeem the bonds. This would be a loss on the books. E. Where is the gain or loss, if any, reported in the financial statements? (consider them all...) NOW, revisions of the rest of the questions: F. At the end of the third year after the interest payment date (like in \#3), if Sanchez issues new bonds to refund the bonds (I.e., pay them off exactly) that carry a coupon rate of 12% for the remaining life (how many periods?) of the bonds, at what price would these be issued? a. Would this be a premium, discount, or par? G. Now let us consider the cash flows: for the new bonds, how much cash would be paid out on interest over the term of the new bonds? How much cash would be paid in total over the term