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please solve all Dektronik Corporation manufactures electrical test equipment. The company's board of directors authorized a bond issue on January 1, year 1, with the

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Dektronik Corporation manufactures electrical test equipment. The company's board of directors authorized a bond issue on January 1, year 1, with the following terms: Use Table 9C.1 and Table 9C.2. (Round time value factor to 4 decimal places.) Maturity (par) value: $800,000 Interest: 7.5 percent per annum payable each December 31 Maturity date: December 31, year 5 Effective interest rate when sold: 8 percent Required: 1. Compute the bond issue price. Bond issue price 2. Assume that the company used the straight-line method to amortize the discount or premium on the bond issue. Compute the following amounts for each year (years 1 to 5): (Make sure that the unamortized discount/premium equals to 'O' and the Net Liability equals to face value of the bond in the last period. Round intermediate and final answers to the nearest whole dollar. Round percentage answers to 2 decimal places. I.e., 0.1234 to be entered as 1.23. Input all amounts as positive values.): Year 1 Year 2 Year 3 Year 4 Year 5 a. Cash payment for bond interest b. Amortization of bond discount or premium c Bond interest expense 2. Assume that the company used the straight-line method to amortize the discount or premium on the bond issue. Compute the following amounts for each year (years 1 to 5): (Make sure that the unamortized discount/premium equals to 'O' and the Net Liability equals to face value of the bond in the last period. Round intermediate and final answers to the nearest whole dollar. Round percentage answers to 2 decimal places. i.e., 0.1234 to be entered as 1.23. Input all amounts as positive values.): Year 1 Year 2 Year 3 Year 4 Year 5 a. Cash payment for bond interest b. Amortization of bond discount or premium C. Bond interest expense d. Carrying amount of the bond Interest expense as a percentage of the carrying amount at the e. beginning of the year % % % % 3. Assume instead that the company used the effective-interest method to amortize the discount or premium. Prepare an effective- interest bond amortization schedule. (Make sure that the unamortized discount/premium equals to 'O' and the Net Liability equals to face value of the bond in the last period. Round the final answers to the nearest whole dollar.) Bond Payment Schedule Cash Interest Amortization of Payment Expense Discount Date Net Liability 1/1/year 1 12/31/year 1 12/31/year 2 12/31/year 3 12/31/year 4 12/31/year 5 4. Which method should the company use to amortize the bond discount or premium? As a financial analyst, would you prefer one method over the other? Straight-line method Effective-interest amortization O Deferred-interest method TABLE 9C.1 Present Value of $1, p = 1/(1+)" Periods 1.5% 1.75% 2% 2.25% 2.5% 2.75% 3% 3.25% 3.3% 1 0.9852 0.9828 0.9804 0.9780 0.9756 0.9732 0.9709 0.9685 0.9662 2 0.9707 0.9659 0.9612 0.9565 0.9518 0.9472 0.9426 0.9380 0.9335 3 0.9563 0.9493 0.9423 0.9354 0.9286 0.9218 0.9151 0.9085 0.9019 4 0.9422 0.9330 0.9238 0.9148 0.9060 0.8972 0.8885 0.8799 0.8714 5 0.9283 0.9169 0.9057 0.8947 0.8839 0.8732 0.8626 0.8522 0.8420 6 0.9145 0.9011 0.8880 0.8750 0.8623 0.8498 0.8375 0.8254 0.8135 7 0.9010 0.8856 0.8706 0.8558 0.8413 0.8270 0.8131 0.7994 0.7860 8 0.8877 0.8704 0.8535 0.8369 0.8207 0.8049 0.7894 0.7742 0.7594 9 0.8746 0.8554 0.8368 0.8185 0.8007 0.7834 0.7664 0.7499 0.7337 10 0.8617 0.8407 0.8203 0.8005 0.7812 0.7624 0.7441 0.7263 0.7089 11 0.8489 0.8263 0.8043 0.7829 0.7621 0.7420 0.7224 0.7034 0.6849 12 0.8364 0.8121 0.7885 0.7657 0.7436 0.7221 0.7014 0.6813 0.6618 13 0.8240 0.7981 0.7730 0.7488 0.7254 0.7028 0.6810 0.6598 0.6394 14 0.8118 0.7844 0.7579 0.7323 0.7077 0.6840 0.6611 0.6391 0.6178 15 0.7999 0.7709 0.7430 0.7162 0.6905 0.6657 0.6419 0.6189 0.5969 16 0.7880 0.7576 0.7284 0.7005 0.6736 0.6479 0.6232 0.5995 0.5767 17 0.7764 0.7446 0.7142 0.6851 0.6572 0.6305 0.6050 0.5806 0.5572 18 0.7649 0.7318 0.7002 0.6700 0.6412 0.6137 0.5874 0.5623 0.5384 19 0.7536 0.7192 0.6864 0.6552 0.6255 0.5972 0.5703 0.5446 0.5202 20 0.7425 0.7068 0.6730 0.6408 0.6103 0.5813 0.5537 0.5275 0.5026 30 0.6398 0.5942 0.5521 0.5130 0.4767 0.4431 0.4120 0.3831 0.3563 40 0.5513 0.4996 0.4529 0.4106 0.3724 0.3379 0.3066 0.2782 0.2526 50 0.4750 0.4200 0.3715 0.3287 0.2909 0.2576 0.2281 0.2021 0.1791 Periods 3.75% 4% 4.5% 5% 6% 7% 8% 9% 10% 1 0.9639 0.9615 0.9569 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 2 0.9290 0.9246 0.9157 0.9070 0.8900 0.8734 0.8573 0.8417 0.8264 3 0.8954 0.8890 0.8763 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 4 0.8631 0.8548 0.8386 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 5 0.8319 0.8219 0.8025 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 6 0.8018 0.7903 0.7679 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 7 0.7728 0.7599 0.7348 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 8 0.7449 0.7307 0.7032 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 9 0.7180 0.7026 0.6729 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 10 0.6920 0.6756 0.6439 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 11 0.6670 0.6496 0.6162 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 12 0.6429 0.6246 0.5897 0.5568 0.4970 0.4440 0.3971 0.3555 0.3186 13 0.6197 0.6006 0.5643 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 14 0.5973 0.5775 0.5400 0.5051 0.4423 0.3878 0.3405 0.2992 0.2633 15 0.5757 0.5553 0.5167 0.4810 0.4173 0.3624 0.3152 0.2745 0.2394 16 0.5549 0.5339 0.4945 0.4581 0.3936 0.3387 0.2919 0.2519 0.2176 17 0.5348 0.5134 0.4732 0.4363 0.3714 0.3166 0.2703 0.2311 0.1978 18 0.5155 0.4936 0.4528 0.4155 0.3503 0.2959 0.2502 0.2120 0.1799 19 0.4969 0.4746 0.4333 0.3957 0.3305 0.2765 0.2317 0.1945 0.1635 20 0.4789 0.4564 0.4146 0.3769 0.3118 0.2584 0.21450.1784 0.1486 30 0.3314 0.3083 0.2670 0.2314 0.1741 0.1314 0.0994 0.0754 0.0573 40 0.2293 0.2083 0.1719 0.1420 0.0972 0.0668 0.0460 0.0318 0.0221 50 0.1587 0.1407 0.1107 0.0872 0.0543 0.0339 0.0213 0.0134 0.0085 TABLE 90.2 Present Value of Annuity of $1.p = 11 - 111+ nayi Periods 1.5% 1.75% 2% 2.25% 2.5% 2.75% 3.25% 3.5% 1 0.9852 0.9828 0.9804 0.9780 0.9756 0.9732 0.9709 0.9685 0.9662 2 1.9559 1.9487 1.9416 1.9345 1.9274 1.9204 1.9135 1.9066 1.8997 3 2.9122 2.8980 2.8839 2.8699 2.8560 2.8423 2.8286 2.8151 2.8016 4 3.8544 3.8309 3.8077 3.7847 3.7620 3.7394 3.7171 3.6950 3.6731 5 4.7826 4.7479 4.7135 4.6795 4.6458 4.6126 4.5797 4.5472 4.5151 6 5.6972 5.6490 5.6014 5.5545 5.5081 5.4624 5.4172 5.3726 5.3286 7 6.59826.5346 6.4720 6.4102 6.3494 6.2894 6.2303 6.1720 6.1145 8 7.48597.4051 7.3255 7.2472 7.1701 7.0943 7.0197 6.9462 6.8740 8.3605 8.26058.1622 8.0657 7.9709 7.87777.7861 7.6961 7.6077 10 9.2222 9.1012 8.9826 8.8662 8.7521 8.6401 8.5302 8.4224 8.3166 11 10.0711 9.9275 9.7868 9.6491 9.5142 9.3821 9.2526 9.1258 9.0016 12 10.9075 10.7395 10.5753 10.4148 10.2578 10.1042 9.9540 9.8071 9.6633 13 11.7315 11.5376 11.3484 11.1636 10.9832 10.8070 10.6350 10.4669 10.3027 14 12.5434 12.3220 12.1062 11.8959 11.6909 11.4910 11.2961 11.1060 10.9205 15 13.3432 13.0929 12.8493 12.6122 12.3814 12.1567 11.9379 11.7249 11.5174 16 14.1313 13.8505 13.5777 13.3126 13.0550 12.8046 12.5611 12.3244 12.0941 17 14.9076 14.5951 14.2919 13.9977 13.7122 13.4351 13.1661 12.9049 12.6513 18 15.6726 15.3269 14.9920 14.6677 143534 14.0488 13.7535 13.4673 13.1897 19 16.4262 16.0461 15.6785 15.3229 14.9789 14.6460 14.3238 14.0119 13.7098 20 17.1686 16.7529 16.3514 15.9637 15.5892 15.2273 14.8775 14.5393 14.2124 30 24.0158 23.1858 22.3965 21.6453 20.9303 20.2493 19.6004 18.9819 18.3920 40 29.9158 28.5942 27.3555 26.1935 25.1028 24.0781 23.1148 22.2084 21.3551 50 34.9997 33.1412 31.4236 29.8344 28.3623 26.9972 25.7298 24.5518 23.4556 Periods 3.75% 4% 4.5% 5% 6% 7% 8% 9% 10% 1 0.9639 0.9615 0.9569 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 2 1.8929 1.8861 1.8727 1.8594 1.8334 1.8080 1.7833 1.7591 1.7355 3 2.7883 2.7751 2.7490 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 4 3.6514 3.6299 3.5875 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 5 4.4833 4.4518 4.3900 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 6 5.2851 5.2421 5.1579 5.0757 4.9173 4.7665 4.6229 4.48594.3553 7 6.05796.0021 5.8927 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 8 6.8028 6.7327 6.5959 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 9 7.5208 7.4353 7.2688 7.1078 6.8017 6.5152 6.2469 5.9952 5.7590 10 8.2128 8.1109 7.9127 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 11 8.8798 8.7605 8.5289 8.3064 7.88697.4987 7.1390 6.8052 6.4951 12 9.52279.3851 9.1186 8.8633 8.3838 7.9427 7.5361 7.1607 6.8137 13 10.1424 9.9856 9.6829 9.3936 8.8527 8.3577 7.9038 7.4869 7.1034 14 10.7396 10.5631 10.2228 9.8986 9.2950 8.74558.2442 7.7862 7.3667 15 11.3153 11.1184 10.7395 10.3797 9.7122 9.1079 8.5595 8.0607 7.6061 16 11.8702 11.6523 11.2340 10.8378 10.1059 9.4466 8.8514 8.3126 7.8237 17 12.4050 12.1657 11.7072 11.2741 10.4773 9.7632 9.1216 8.5436 8.0216 18 12.9205 12.6593 12.1600 11.6896 10.8276 10.0591 9.3719 8.7556 8.2014 19 13.4173 13.1339 12.5933 12.0853 11.1581 10.3356 9.6036 8.9501 8.3649 20 13.8962 13.5903 13.0079 12.4622 11.4699 10.5940 9.8181 9.1285 8.5136 30 17.8292 17.2920 16.2889 15.3725 13.7648 12.4090 11.2578 10.2737 9.4269 40 20.5510 19.7928 18.4016 17.1591 15.0463 13.3317 11.9246 10.7574 9.7791 50 22.4345 21.4822 19.7620 18.2559 15.7619 13.8007 12.2335 10.9617 9.9148

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