:Please help me answer the following questions.

You will need to use time value of money tables to solve this problem. The present value of $1 and Present Value of an Annuity tables are presented on the previous two tabs. To ensure accuracy, round the time value of money factors to 2 decimal places only. For example, if the factor is 2.57709699, round it to 2.58.

On January 2, 20X1, the Premuroso Company, Inc., a privately held company, issued $1,000,000, 5-year, 10% term bonds, dated January 2, 20X1. The bonds provided for semiannual interest payments to be made on June 30 and December 31 of each year. Terms of the bond indenture allowed the company to call the bonds at 102 after 1 year. The bonds were issued when the market interest rate was 8%.

Premuroso, Inc. uses the effective interest method for amortizing bond discounts and premiums.

Premuroso's fiscal year end for financial reporting purposes is December 31.

The company called the bonds at 102 on June 30, 20X2.

Calculate the present values of the principal and interest cash flows related to the bonds and the resulting bond issue price. In the Compounding period(s), Interest rate, Payment amount, and Present value columns, select from the option list provided the appropriate value. Each choice may be used once, more than once, or not at all. In the Factor column, find the appropriate time value factors in the references in the exhibits and enter those values in the appropriate cell. Then, use the spreadsheet to calculate the bond issue price in the Present value column based on your entries.

Summary of Facts:

Face of Bonds $1,000,000

Stated Rate of Interest 10% per year

Market Rate of Interest 8% per year

Term of Bonds 5 years

Part A) Compute the price of the bonds using formulas embedded into the cells of the table below.

# of Compounding Periods Effective Interest Rate per Period (%) Payment Amount Which TVM Table? (Select from Dropdown box) Time Value of Money Factor (Round to 2 decimal places) Present Value

Face of the Bonds

Periodic Interest Payments

Price of the Bonds =

Part B) Prepare the journal entry for the issuance of the bonds.

Bonds issuance:

Accounts Debits Credits 1/2/20X1

Part C)

Present a bond amortization table using the effective interest method.

Effective Interest Method of Amortizing the Bond Premium

Date Interest Payment Interest Expense Amortization of Bond Premium Bond Premium Bonds Payable Book Value

1/2/20x1

6/30/x1

12/31/x1

6/30/x2

12/31/X2

1/1/x6

Part D) Prepare the June 30, 20X4 journal entry by referencing cells in the amortization table you created in #2 above.

Account Debits Credits

Question 3 Consider a standard production economy (J.d, (u', when. (Yea, (s "Juneaxal where at least one of the agents has strictly monotone preferences. Recall that an allocation is a pair (x, y) = (x' .....x, y' ,....y'je(R!)' x (RL)I such that y' ( Yi for each j, and ). x' = ), wi + ); y'; and that allocation (x, y) is Pareto efficient if there does not exist another allocation (x, y) such that u* (x) > ul(x' ) for all consumers, with strict inequality for some. A profile of production plans y = (y', ....y ) is feasible if yl e Y for each j; a feasible profile of production plans is technically efficient if there does not exist an alternative feasible plan y such that [, y' > E, y'. Also, given a profile y of production plans, a profile x = (x',..., x ] of consumption bundles is feasible if E x' = [: wi + ); y'. Finally, feasible profile x is allocationly efficient, given y, if there does not exist an alternative profile & that is also feasible given y and such that u' (*' ) > ul (x' ) for all consumers, with strict inequality for some. Given these definitions: 1. Argue that if (x, y) is Pareto efficient, then profile y is technically efficient (since one agent has strictly monotone preferences). 2. Argue that if (x, y) is Pareto efficient, then profile x is feasible and allocatingly efficient given y. 3. In what follows you will argue that, even together, technical and allocation efficiency don't suffice to guarantee Pareto efficiency. Suppose that there are two commodities, two individuals and one firm. Both individuals have smooth utility functions, while the technology of the firm is Y =((y1, yz) ER, x R_ ly,