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The following information is available on bonds: Type of bond: Equal payment bond ( annuity ) ( in point a ) . Type of bond:

The following information is available on bonds:
Type of bond: Equal payment bond (annuity)(in point a).
Type of bond: With equal installments (in point c)
Nominal value of principal: ISK. 25,000,000
Loan term 15 years
Installments and interest paid annually (every 12 months)
Nominal interest rate of the bond: 9.0%(no borrowing fee)
a) Show the installment and interest payments along with the total payments for each year for the equalization bond.
b) Use T-accounts to describe the bond's transactions in point a) debit and credit at the beginning and at each maturity date, i.e. interest, installments and amount to be paid.
c) Answer part a- assuming that it is a bond with equal installments instead of a lump sum bond.
d) Set up graphs that show the payment processes (free choice of graph type)

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