Pencil Corp is looking to issue a bond to raise capital for expanding their product line to include echanical pencils. The company needs to raise $$3,000,000$ which will be paid back over a $25$ year time frame ind rates can be issued at $5\mathrm{.}50\%,7\mathrm{.}75\%$ or $9\mathrm{.}05\%,$ with a higher assurance of investors with the higher rate. a high enough rate is not offered, Pencil Corp runs the risk of not raising the necessary capital. However, e CFO does not want to spend more in bond interest than necessary, and wants repayment amounts to fit thin budget for the expansion project. Create an amortization table for the expense. How much would be iid in interest for each interest rate scenario? What rate would you choose and why? $($Hint: Determine ture value first, using the middle rate.$)$

$PV=$

$\frac{\text{I}}{Y}R=$

$N=$

Formula:

$FV=PV(1+1{)}^N=$