Cumming Corp. issues a $$6,800,000,5\%$ bond on $1$ April $20$X$3.$ At this time, market interest rates are in the range of $6\%.$ The bond had a $10-$year life from $1$ April $20$X$3,$ and paid interest semi$-$annually on $31$ March and $30$ September. $($PV of $$1,$ PVA of $$1,$ and PVAD of $$1.)$

Required:

$1.$ Calculate the proceeds that would be raised on bond issuance. $($Round time value factor to $5$ decimal places. Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.$)$

$2.$ Prepare an amortization table using the effective interest method of amortization. Complete the first four payments only. $($Round your answers to the nearest whole dollar amount.$)$

Answer rating: 100% (QA)

Given information Bond amount 6800000 Coupon rate 5 Market interest rate 6 Bond life 10 years ... View the full answer