You have been working as the controller of Fixzit Corporation for the past six years. Last week you had

appointed a bright young student, Daye Bitt, from Konkord University as a work study intern for one

year. Early this morning, the frazzled looking intern approaches you with a great bit of reluctance. From

the looks on his face, you can determine fear, both for his current placement and for his future career. He

informs you that, in his haste to do an assigned task, he just shredded the active folder instead of

the archived one. Next he shows you a very damaged piece of paper which Daye Bitt had rescued at a

great risk to his hand and fingers. The document, in its original state, represented a bond amortization

table, but now was totally shredded except for a few following lines of information:

Date Coupon Interest Balance

Amount Expense Owed

Jan. 1, 2015 ... ... ...

... ... ... ...

... ... ... ...

.

.

... ... ... ...

Dec. 31, 2022 ... ... $209,570.26

June 30, 2023 $14,400 $20,957.03 $216,127.29

Dec. 31, 2023 ... ... ...

June 30, 2024 ... ... ...

Dec. 31, 2024 ... ... ...

He sounded pretty desperate as he pleaded his hope that "... if I am unable to reproduce this table, I

hope you are not going to can me tonight". He did not know the maturity value, stating "I am pretty

young and will be called mature after a long time". About the coupon and market rates, he

responded, "I really do not clip any coupons; my wife does. And since she does all the shopping, I

have no idea about all the market prices". You are aware that the bonds were issued on January 1,

2015, maturing on December 31, 2024, and with interest payments on June 30 and December 31.

And so you sit down and show him how to reconstruct the table. In doing so, you need to answer the

questions listed below.

REQUIRED:

a] Determine the market rate of the bonds.

b] Determine the par (maturity) value of the bonds.

c] Determine the coupon rate of the bonds.

d] Calculate the issue price of the bonds on January 1, 2015.