$1.$ Your company is considering a $10-$year bond issue in order to fund a future plant expansion of their

manufacturing site. Assume that your company has a $12/31$ fiscal year$-$end, the bond will be issued on

$1/1/25,$ and interest will be paid twice a year $($on $6/30$ and $12/31).$ You should choose the face value,

stated rate and effective rate of interest.

$2.$ Your company is also purchasing a new building to house its corporate headquarters. They are in

negotiations with the bank to obtain a mortgage. The $20-$year mortgage will call for payments at the

end of each month. Assume that your company has a $12/31$ fiscal year$-$end and that the mortgage will

be issued on $1/1/25.$ You should choose the building value and mortgage rate of interest.

Prepare a spreadsheet using professional template design that will show senior management the cash flow,

balance sheet and income statement implications of each borrowing $($i$.$e$.$ an amortization table$).$ You should

use one Excel file but a separate worksheet for each borrowing.

You should use the PV and PMT functions in Excel where necessary for time value computations. You should

NOT use the factors from the Present Value tables in your textbook or elsewhere