Question: Bonds Payable Background Information Silver Company issues bonds payable on January 1, 2020. Here are the details: stated interest rate=4%; market interest rate will vary,

Bonds Payable Background Information Silver Company issues bonds payable on January

Bonds Payable Background Information Silver Company issues bonds payable on January 1, 2020. Here are the details: stated interest rate=4%; market interest rate will vary, below principal (face value) = $50,000,000; maturity date: December 31, 2023 the bonds go for ? years; interest is paid once a year, at the end of the year A. Assume the Market Interest Rate is 3% (1) Compute the present value of the cash flows, which is the same as the issue price for the bonds payable ***Requirements: Use Excel-and show the inputs that you are using for each calculation (similar to what I have done in the Chapters 9 and 10 Handout SECTION TWO for Excel) And show each cash flow separately, then add together (2) Prepare an amortization for the life of the bonds. ***Requirement: Please use Excel. B. Assume the Market Interest Rate is 5% (1) Compute the present value of the cash flows, which is the same as the issue price for the bonds payable See Requirements above (2) Prepare an amortization for the life of the bonds. See Requirement above

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