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What is the correct PV excel formula for F14? I know the answer is $7,282,977 but it's telling me my answer is incorrect due to
What is the correct PV excel formula for F14?
I know the answer is $7,282,977 but it's telling me my answer is incorrect due to an incorrect formula.
Thank you!
\begin{tabular}{|c|l|c|} \hline 7 & Bonds dated & Principal \\ \hline 8 & Stated rate & Market (effective) rate \\ \hline 9 & Term (years) \\ \hline 10 & Interest payments per year \\ \hline 11 & & $,2023,000,000 \\ \hline 12 & & 20.5% \\ \hline 13 & & 11.0% \\ \hline \end{tabular} 1. Determine the price of the bonds at January 1, 2023 using Excel's PV function. =PV(E10/2,E11E12,E8E9/2,E8) Formula m 3. Record the first interest payment on June 30,2023 (at the effective rate). \begin{tabular}{|c|c|r|r|} \hline 23 & \multicolumn{1}{|c|}{ Date } & \multicolumn{2}{|c|}{ Credit } \\ \hline 24 & June 30, 2023 & Interest expense & \\ \hline 25 & & Cash & \\ \hline 26 & & Discount on bonds payable & \\ \hline \end{tabular} 4. Record the second interest payment on December 31, 2023 (at the effective rate). \begin{tabular}{|l|c|c|c|r|} \hline 29 & \multicolumn{1}{c|}{ Date } & \multicolumn{1}{c|}{ General Journal } & \multicolumn{1}{c|}{ Debit } \\ \hline 30 & December 31, 2023 & Interest expense & 401,695 & \\ \hline 31 & & Cash & \\ \hline 32 & & Discount on bonds payable & 380,000 \\ \hline \end{tabular}Step by Step Solution
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