Create one workbook with three worksheets showing the loan$/$bond options.

Annual Loan

Create a sheet and name it "Annual Loan."

Create a header for the page.

Set up the assumptions $($loan amount, interest rate, term$)$ at the top of the sheet.

Calculate the payment amount.

Create an amortization schedule.

Add a total row underneath the amortization schedule and use formulas appropriately.

Create a one$-$variable data table. In the data table, show what the annual payment would be

if the interest rate were $5\%,6\%,7\%,8\%,$ and $9\%.$

Monthly Loan

Create a sheet and name it "Monthly Loan."

Create a header for the page.

Set up the assumptions $($loan amount, interest rate, term$)$ at the top of the sheet.

Calculate the payment amount.

Create an amortization schedule.

Add a total row underneath the amortization schedule and use formulas appropriately.

Bonds

Create a sheet and name it "Bonds."

Create a header for the page.

Set up the assumptions $($face value, contract rate, effective rate, term$)$ at the top of the

sheet.

Calculate the interest payment amount and the proceeds.

Create an amortization schedule

Add a total row underneath the amortization schedule and use formulas appropriately.You are still working with Angela Zithern at Ye Olde Sweets. Angela needs to purchase some more equipment, so she is considering borrowing some money. Angela has two options: she can get a loan from the bank or sell some bonds in the market.

The bank is offering a $$50,000$ loan with a $10-$year term and interest rate of $7\%.$ Angela has the option of either paying monthly or annually. $($All payments will be made at the end of the period.$)$

Angela also has the option of selling bonds. The bonds would be $$50,000$ face value with a contract rate of $6\%.$ The market rate right now is $7\%.$ The interest will be paid annually with the principal due in $10$ years.

Angela also asks you what would happen if the interest rate changes. You say, $$I$$ll get you the schedules and then show you what happens if the rate changes.$$