how to create an amortization schedule for bonds that are sold at a premium ($1,000 bond...

how to create an amortization schedule for bonds that are sold at a premium ($1,000 bond is sold for more than $1,000). given facts about a bond sold at a premium, someone should be able to follow your instructions and produce an amortization schedule

Expert Solution

ekkarill92 answered 2 years ago

An amortization schedule is a common concept within a banking enterprise. Create your own amortization schedule...

An amortization schedule is a common concept within a banking enterprise. Create your own amortization schedule for a $10,000 loan with monthly payments paid over two years. Assume the annual percentage rate (APR) is 4%. Create the amortization schedule within Excel or another spreadsheet application. Use page 184 as a template. Keep in mind that the example on page 184 uses annual payments, while your schedule will use monthly payments. You will need to adjust the number of payment periods...

Finance- Amortization Schedule Create the amortization schedule for a loan of $5,000, paid monthly over two...

Finance- Amortization Schedule Create the amortization schedule for a loan of $5,000, paid monthly over two years using an 8 percent APR.

Prepare amortization schedule for the bond issuances. Note interest is semi- annual for the coupon bonds...

Prepare amortization schedule for the bond issuances. Note interest is semi- annual for the coupon bonds and you may assume annual for the zero- coupon bonds. ABC Co. issued $3,527 million face value, 20-year, zero coupon bonds on July 1, 2017 that mature June 30, 2037 for a cash price of $2,619 million. The effective market interest rate at issuance was 1.5%. Amounts shown in millions.

Problem 5-50 Amortization Schedule (LG9) Create the amortization schedule for a loan of $4,300, paid monthly...

Problem 5-50 Amortization Schedule (LG9) Create the amortization schedule for a loan of $4,300, paid monthly over two years using an 9 percent APR. (Round your answers to 2 decimal places.) Month Beginning Balance Total Payment Interest Paid Principal Paid Ending Balance 1 2 3 4 5 6 7 ...

Problem 5-49 Amortization Schedule (LG9) Create the amortization schedule for a loan of $14,000, paid monthly...

Problem 5-49 Amortization Schedule (LG9) Create the amortization schedule for a loan of $14,000, paid monthly over three years using a 9 percent APR. (Round your answers to 2 decimal places.) Month Beginning Balance Total Payment Interest Paid Principal Paid Ending Balance 1 2 3 4 5 6 7...

Analyzing a Bond Amortization Scheduale: Reporting Bonds Payable Stein Corporation issued a $1,000 bond on January...

Analyzing a Bond Amortization Scheduale: Reporting Bonds Payable Stein Corporation issued a $1,000 bond on January 1, 2017. The bond specified an interest rate of 9 percent payable at the end of each year. The bond matures at the end of 2019. It was sold at a market rate of 11 percent per year. The following sceduale was completed: Cash Paid Interest Expense Amoritization Carrying Amount January 1, 2017 (issuance) $ 951 End of Year 2017 ? $ 105 $...

Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond discount or premium.

Question: Schmidt Company issued $100,000, 4%, 10-year bonds payable at 98 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Journalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018. 8. Assume the bonds payable was instead issued at 106. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of...

Amortization Schedules This project requires you to create an amortization schedule for two types of loans,...

Amortization Schedules This project requires you to create an amortization schedule for two types of loans, a fully amortizing constant payment mortgage (CPM) loan and a constant amortizing (CAM) loan. In your report, compare the amortization schedule of the CPM and CAM loans (How are they similar? How are they different? Which would you prefer and why?) Part 1: Monthly Payment Consider a $10,000 loan made at a 12 percent annual (nominal) rate of interest for 3 years. A) Calculate...

Bond issue price and premium amortization On January 1, 2013, Piper Co. issued ten-year bonds with...

Bond issue price and premium amortization On January 1, 2013, Piper Co. issued ten-year bonds with a face value of $4,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are: Present value of 1 for 10 periods at 10%.................. .386 Present value of 1 for 10 periods at 12%.................. .322 Present value of 1 for 20 periods at 5%.................... .377 Present value of 1...

Straight line amortization of bond premium or discount Four Seasons issues $2,000,000 of 8%, 4-year bonds...

Straight line amortization of bond premium or discount Four Seasons issues $2,000,000 of 8%, 4-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of 2,030,00 Prepare the January 1, 2017, journal entry to record the issuance. For each semiannual period, compute the cash payment, the straight-line premium or discount amortization the bond interest expense Cash proceeds= 2,030,000 x .08 Cash proceeds= 1,624,000 Bonds interest expense= cash...

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