Part VIII - Bonds On January 1, 2010, Zilda Co. issued bonds with a face value of $1,000,000. The bonds mature on December 31, 2014. The bonds have an annual coupon rate of 7%. Coupon payment is made semiannually on June 30 and December 31. Suppose the market interest rate is 6% (annual). compounded semiannually. a. Calculate the proceeds from the bond issue. b. Complete the amortization schedule below for the first three periods of the bonds' life. End Date Beginning Book value Interest Exp. Coupon Payment Ending Book Value 6/30/2010 12/31/2010 6/30/2011 c. Answer the questions below: Indicate the amount of interest expense that Zilda would present in its income statement for the year 2010 Were the bonds issued at a premium or discount? Indicate the amount of Bond Premium (Discount) when the bond was issued Indicate how these bonds would impact cash flow from operating activities for the year 2010 Indicate how these bonds would impact cash flow from investing activities for the year 2010 Indicate how these bonds would impact cash flow from financing activities for the year 2010 What is the annual rate of return of the bondholders and the cost of borrowing for the company