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On January 1, 2021, the Blue Devil Corporation issued $80,000 of five-year bonds. The bonds carried an annual stated interest rate of 5 percent,
On January 1, 2021, the Blue Devil Corporation issued $80,000 of five-year bonds. The bonds carried an annual stated interest rate of 5 percent, with interest payable semiannually on June 30 and December 31 REQUIRED: 1. Using the Excel PV function, determine the proceeds of the bond issuance assuming a 6 percent annual effective (market) interest rate Use two present value tables to compute the price of the bonds. Show it on the Excel document 2. Use the answer from the Excel PV function, and create an amortization table In Excel for the entire term of the bonds using the effective interest method of amortization. A formula or copying a formula is required for all cells that contain numbers 3. Using the Excel PV function, determine the proceeds of the bond issuance assuming a 4 percent annual effective (market) interest rate Use two present value tables to compute the price of the bonds. Show it on the Excel document 4. Using sheet 2 of the same file you created for step 2, repeat step 2 above assuming that the annual market interest rate is 4 percent
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