Ware Co$.$ produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $$33,000,000$ of $4-$year, $12\%$ bonds at a market $($effective$)$ interest rate of $10\%,$ with interest payable semiannually. DATA

Face amount of bonds $$33,000,000$

Contract rate of interest $12\%$

Term of bonds, years $4$

Market rate of interest $10\%$

Interest payment Semiannuala. Compute the amount of cash proceeds from the sale of the bonds.

b$.$ Compute the amount of premium to be amortized for the first semiannual interest payment period, using the interest method.

c$.$ Compute the amount of premium to be amortized for the second semiannual interest payment period, using the interest method.

d$.$ Compute the amount of the bond interest expense for the first year.

Using formulas and cell references from the problem data, perform the required analysis. Formulas entered in the green cells show in the orange cells. Transfer amounts to CNOWv$2$ for grading.

Amounts Formulas

a$.$ PV of cash proceeds

b$.$ Premium amortized for the $1$st interest payment period

c$.$ Premium amortized for the $2$nd interest payment period

d$.$ Interest expense for the $1$st year