You can use a calculator or Excel, but use Excel to prepare amortization tables.

A company issued term bonds with a par value of $ 200,000, a life of 12 years and a nominal rate of 6.40% per annum. The bonds pay interest every six months.

1. If the market rate (yield) on the bond issue date was 8.30% per year, at what price were the bonds issued?

2. How much is the interest expense for the second period (semester) of these bonds?