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Please help, The first attachment is the problem I am supposed to be creating. The second two attachments is my example and my work... I'm
Please help,
The first attachment is the problem I am supposed to be creating. The second two attachments is my example and my work... I'm confused and have tried to solve this problem several times now and I am stuck... I don't know how to finish this problem or if my work is right in the first place.
EFFECTIVE INTEREST AMORTIZATION and CALL OF BONDS DATA: Bonds are $100,000 3-year debentures; stated rate is 12%. Sold on date of issue January 1,20X1. Bonds pay interest semiannually June 30 and December 31. The fiscal year is the calendar year. Effective rate of interest is 10% Determine the selling price of the bond: 6 periods (32) at 5%(10%/2) Present value of future sum 7462100,000 Present value of the annuity 5.0757(100,00012%6/12=6,000) Selling price of bonds Tine 2 - Davmant af intaraet and amnotisation Effective Interest Amortization and Call of Bonds. Data: Bonds are $95,0003-year debentures stated rate is 10%. Sold on date of issue January 1 , 2020. Bonds pay interest semiannually on June 30 and December 31 . The fiscal year is the calendar year. The effective rate of interest is 8%. Determine the selling price of the bond: 6 periods (32) at 4%(8%/2) Present value of future sum: 75,078.5 (0.790395,000)= Present value of the annuity: 24,899.98 5.2421(95,00010%6/12)4,750= Selling price of bonds: 99,978.48 (75,078.5+24,899.98)= Effective Interest Amortization Schedule Footnote: 99,978.484%=3,999,13924,7503,999.14=750.864,978.48750.86=4,227.62100,000+4,227.62=104,227.62104,227.624%=4,169.10484,7504,169.10=580.904,227.62580.90=3,646.72100,000+3,646.72=103,646.72103,646.724%=4,145.86884,7504,145.87=604.133,646.72604.13=3,042.59100,00+3,042.59=103,042,59103,042.594%=4,121,70364.7504,121.70=628.33,042.59628.30=2,414.29100,000+2,414.29=102,414.29102,414.294%=4,096.57164,7504,096.57=653.432,414.29653.43=1,760.86100,000+1,760.86=101,760.86Step by Step Solution
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