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In: Accounting

Based on the given information, calculate PV of the bonds and prepare amortization schedules (1 discounted...

Based on the given information, calculate PV of the bonds and prepare amortization schedules (1 discounted bond and 1 premium bond).

Term=40, coupon rate 4%, principal 100000 , interest payment per period 4000, lifetime interest payment 160000 and market interest rate (effective rate) 3.5%

pv of lifetime interest payment

pv of principal paypment

pv of bond

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Expert Solution

for formulas and calculations, refer to the image below -

Kindly ask in comments if you have any query.

ekkarill92 answered 2 hours ago
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