Using the excel document enclosed, please assist me in correcting or proofingthe correct formulas to this question. There are 4 tabs in the excel file. I have received answers already from a poorly visiblejpg document that do not align with my answers. The provided answers were NIC = 2.475, TIC = 2.292 and I do not know if they are correct.If your answer can contain assistance in this form(in block C1 on tabA you incorrectly put _____)

In Jan 1, 2009, Central City issued a 5 year serial bond. A total of $8,000 face values of bonds were issued with coupon and maturity rate as follows:

Dec. 31, 2010	2.5%	1000
Dec. 31, 2011	3%	2000
Dec. 31, 2012	4%	2500
Dec. 31, 2013	5%	2500

Central City received 8,500 from the bond issue.

1. (8 points) Find the NIC for the bond issue?
2. (7 points) Find the TIC for the bond issue?

Problem 1 SOLUTION Bond Dollar Years Calculation Year 2008 2009 2010 2011 2012 2013 Bond Dollar Years: Balance Outstanding During Year $8,000 8,000 8,000 7,000 5,000 2,500 $38,500 Year-End Repayment $0 0 1000 2000 2,500 2500 Year-End Balance $8,000 8,000 7,000 5,000 2,500 0 Calculation of Total Annual Payment Year 2008 2009 2010 2011 2012 2013 Totals Year-End Repayment $0 0 1000 2000 2,500 2500 $8,000 2010 2.5% Series $25 25 25 2011 3.0% Series $60 60 60 60 2012 4.0% Series $100 100 100 100 100 2013 5.0% Series $125 125 125 125 125 125 Interest All Series $310 310 310 285 225 125 $1,565 Total Payment $310 310 1,310 2,285 2,725 2,625 $9,565 NIC Calculation Total Interest (Premium) or Discount Bond Dollar Years $1,565 ($500) $38,500 NIC = Total Interest - Premium or Plus Discount ---------------------------------------------------------------Bond Dollar Years NIC = $1,565 + ($500) --------------------------------------------------------------$38,500 = 2.766% TIC Calculation Proceeds of Serial Bond Offering Annual Payments 2008 2009 2010 2011 2012 2013 TIC TIC $8,500 (310) (310) (1,310) (2,285) (2,725) (2,625) = IRR(values,guess) = 2.650%