You can use a calculator or Excel, but use Excel to prepare amortization tables. Exercise Number 1. Term Bonds 12 Points A company issued term bonds with par value of $200,000, life of 12 years and nominal rate of 7.25% per year. The bonds pay interest every six months. Part A 1. If the market rate (yield) on the bond issue date was 8.30% per annum, at what price were the bonds issued? 2. How much is the interest expense for the second period (semester) of these bonds? Part B. Answer the same two questions from Part A if the market rate was 6.40 annual. Exercise Number 2. Zero Coupon Bonuses 6 Points Assume that the bonds in exercise number I pay no periodic interest and that the rate of Market yield on the issue date was 5.50%. 1. At what price were the bonds issued? 2. What is the interest expense for the second year? 3. What is the carrying value of the bonds at the end of the seventh year