Please complete by 5 AM eastern time. I am happy to give thumbs up for correct answers!

Exercise 1-A

Please show the Excel formula and the answer for these to help me include thorough notes.

Jade Motors sells farm equipment. Jade Motors sells Farmer Joe a tractor. Farmer Joe has to make payments every quarter for $1,500 over three years. At the end of the three years, Farmer Joe must pay $6,000. During this time, Farmer Joe could have received a bank loan with an interest rate of 8%.

Based on this information, what is the present value of the tractor?

Exercise 1-B

Please show the Excel formula and the answer for these to help me include thorough notes.

Platinum Enterprises issues $800,000 in 7% bonds that will be due in ten years. The bond holder will have to pay interest twice per year (seminannual interest). The market rate for similar bonds is 10% when the bonds are issued.

Based on this information, what is the issue price of the bonds?