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)

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

1) Create an input table and calculate; (1) PV price and (2) if the bond is trading at a premiur 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 10w 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 inter paid, (2) Period interest expense, (3) Discount/premium amortization. State any assumption you might need to make. [15 Marks] c) Create a journal entry for beginning of Q3 2023. Describe if this bond has yielded a positiv benefit for the buyer. [15 Marks]