ACC142 Financial Accounting \#2: Assignment #3 Due : April 2/2023 11:59 PM (Sunday) Note: Submit into the drobox online (Responses should be typed/ Figures can be hand draw ). Do not plagiarism it goes through plagiarism software! Submit as single PDF Document or Excel workbook. Objective : To apply concepts taught in class (Lecture 6-8) to the questions posed below. 1) Create an input table and calculate; (1) PV price and (2) if the bond is trading at a premium or discount. Use numbers to support your answer. State any assumptions you might need to make. Assume the bond was issued on Jan 1, 2023.[15 Marks] a) This analysis shows that if 10% is the annual market rate for the Apple corporation, the maximum price that buyers will pay (also the minimum price the issuer will accept) is A. The coupon rate is quoted at 11%. b) Create a bond schedule (similar to the class example) and in detail describe; (1) Cash interest paid, (2) Period interest expense, (3) Discount/premium amortization. State any assumptions you might need to make. [15 Marks] c) Create a journal entry for beginning of Q3 2023. Describe if this bond has yielded a positive benefit for the buyer. [15 Marks] 2) Create 3 different portfolios to investigate the impact of longterm \& short-term investment structures: a) (1) only real estate, [12 Marks] b) (2) only equities and bonds, [12 Marks] c) (3) mix of equities, bonds, and real estate [12 Marks] d) Analyze which portfolio yields the best return for your money (use ROI) and explain why. Use a minimum of 4 investments per portfolio and state any assumptions. [14 Marks] 3) Write 3 interesting facts/ lessons you have learnt in the course so far? [5 marks] ACC142 Financial Accounting \#2: Assignment #3 Due : April 2/2023 11:59 PM (Sunday) Note: Submit into the drobox online (Responses should be typed/ Figures can be hand draw ). Do not plagiarism it goes through plagiarism software! Submit as single PDF Document or Excel workbook. Objective : To apply concepts taught in class (Lecture 6-8) to the questions posed below. 1) Create an input table and calculate; (1) PV price and (2) if the bond is trading at a premium or discount. Use numbers to support your answer. State any assumptions you might need to make. Assume the bond was issued on Jan 1, 2023.[15 Marks] a) This analysis shows that if 10% is the annual market rate for the Apple corporation, the maximum price that buyers will pay (also the minimum price the issuer will accept) is A. The coupon rate is quoted at 11%. b) Create a bond schedule (similar to the class example) and in detail describe; (1) Cash interest paid, (2) Period interest expense, (3) Discount/premium amortization. State any assumptions you might need to make. [15 Marks] c) Create a journal entry for beginning of Q3 2023. Describe if this bond has yielded a positive benefit for the buyer. [15 Marks] 2) Create 3 different portfolios to investigate the impact of longterm \& short-term investment structures: a) (1) only real estate, [12 Marks] b) (2) only equities and bonds, [12 Marks] c) (3) mix of equities, bonds, and real estate [12 Marks] d) Analyze which portfolio yields the best return for your money (use ROI) and explain why. Use a minimum of 4 investments per portfolio and state any assumptions. [14 Marks] 3) Write 3 interesting facts/ lessons you have learnt in the course so far? [5 marks]