You are interested in purchasing two bonds. Bond A: 15-year $1,000,000 bond, redeemable at 102.5, and paying semi-annual coupons at i (2) = 4%. It is bought to yield i (2) = 5%. Bond B: 15-year, $1,000,000 bond, redeemable at 102.5 and paying semi-annual coupons at i (2) = 6.5%, bought to yield i (2) = 5%. Set up a bond amortization/accumulation schedule for each bond. Graph the values in the book value column for each bond (on the same graph).

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 3EB: Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual...
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You are interested in purchasing two bonds. Bond A: 15-year $1,000,000 bond, redeemable at 102.5,

and paying semi-annual coupons at (2) = 4%. It is bought to yield (2) = 5%. Bond B: 15-year,

$1,000,000 bond, redeemable at 102.5 and paying semi-annual coupons at (2) = 6.5%, bought to yield

(2) = 5%. Set up a bond amortization/accumulation schedule for each bond. Graph the values in the

book value column for each bond (on the same graph). 

 

Please use the excel and show the formula. Thank you so much.

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