Compute bond proceeds, amortizing premium $by$ interest method, and interest expense

DATA

Face amount $of$ bonds $$45,000,000$

Contract rate $of$ interest $13\%$

Interest payment Semiannual

REQUIRED:

$a.$ Compute the amount $of$ cash proceeds from the sale $of$ the bonds.

$b.$ Compute the amount $of$ premium $tobe$ amortized for the first semiannual interest payment period, using the interest method.

$c.$ Compute the amount $of$ premium $tobe$ amortized for the second semiannual interest payment period, using the interest method.

$d.$ Compute the amount $of$ the bond interest expense for the first year.

Using formulas and cell references from the problem data, perform the required analysis. Formulas entered $in$ the green cells show $in$ the

orange cells. Transfer amounts $to$ CNOWv$2$ for grading.

$a.PVof$ cash proceeds

$b.$ Premium amortized for the $1st$ interest payment period

$c.$ Premium amortized for the $2nd$ interest payment period

$d.$ Interest expense for the $1st$ year