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PLEASE ANSWER IN EXCEL FORMAT WITH FORMULAS INCLUDED Assume that on January 1, Comcast issues $500,000 of 5-year, 10% coupon bonds yielding an effective annual
PLEASE ANSWER IN EXCEL FORMAT WITH FORMULAS INCLUDED
Assume that on January 1, Comcast issues $500,000 of 5-year, 10% coupon bonds yielding an effective annual interest rate of 8%. Interest is payable semiannually on June 30 and December 31. a. Compute the issue price: Semiannual coupon Face value Number of periods Interest rate Issue price b. At what premium or discount will these bonds sell? Premium c. Prepare an amortization table for the bonds for the first two years. Freeze references so you do not need to enter any new formulas after the first period: Period Interest Expense Coupon Payment Discount/Premium Discount/Premium Amortization Balance Bonds Payable, net 0 1 2 3 4Step by Step Solution
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