The amount of the debentures yable on Affy Corporation's books is with a Discount on The (partial) advertisement below appeared in a newspaper Click the icon to view the advertisement) Bequired Requirement 1. Suppose investors purchased these securities at 90.5 on May 10. 2020. Describe the transaction in detail, indicating who received cash, who paid cash, and how much from investors Affly Corporation received cash, and the investors paid cash of Affy Corporation issued the bonds to investors in order to borrow Debentures Payable of Requirement 2. Compute the annual cash interest payment on the Affy Corporation bonds. (Enter the amount in whole dollars, SXXXX) The annual cash interest payment on the bonds is Requirement 3 Prepare an effective interest amortization table for Affy Corporation's first two payments on November 16, 2020. and May 16, 2021. Assume the market f D Date 4.45% B C Interest Interest Unamortized Bond Payment Expense Discount Discount Carrying 4.8% Amortization Balance Amount issuance was 0.0 percent. (Enter amounts in whole dollars, $XXXXX) Nov 16,2020 May 15, 2021 Requirement & Compute Affly Corporations interest expense for the first full year ended May 16, 2021, unde The interest expense for the first year is ation method (Enter the amount in whole dollars, SXXXXX) Requirement 5. Another company's issue of unsecured bonds for $21.000.000 was issued the same day it bore an interest rate of 12.3 percent. Why was the rate so much higher for this issue than for the Affly Corporation issue? The bond sue for $21.000.000 is carrying an interest rate of 12.3 percent (which is higher than the Affy issue) because it is likely decerture as noted in the advertisement Enter any number in the edit fields and then continue to the ned question, In order to attract investors, the interest rate would have to be greater than the Affly bond issue, which is a secured Required - X Advertisement - X 1. 2. 3. 4. 5. Suppose investors purchased these securities at 96.5 on May 16, 2020. Describe the transaction in detail, indicating who received cash, who paid cash, and how much Compute the annual cash interest payment on the Affly Corporation bonds. Prepare an effective-interest amortization table for Affly Corporation's first two payments, on November 16, 2020, and May 16, 2021. Assume the market rate at the date of issuance was 9.6 percent 177 Compute Affly Corporation's interest expense for the first full year ended May 16, 2021, under the effective-interest amortization method Another company's issue of unsecured bonds for $21,000,000 was issued the same day, it bore an interest rate of 12.3 percent. Why was the rate so much higher for this issue than for the Affly Corporation issue? Print Done Payment Expense Discount Discount Carrying Dalimae This announcement appears as a matter of record only. Affly Corporation, Inc. $100,000,000 8.9% Series E Secured Debentures due May 16, 2025 guaranteed by Affly Corporation and Company, Limited Partnership Lvesque Beaubein Geoffrion Inc. Richardson Greenshields of Canada Limited Nesbitt Bums Inc. Toronto Dominion Securites Inc. Wood Gundy Inc. of the debentures uance was 9.6 Enter any number in the edit fields and then continue to the next question. Esc 4+ Print Done