Question: Power Solutions Ltd. issues a $10,500,000, five year. 4.5% bond with semi-annual interest payments. Underwriting costs.pold up front are $672,000. The bond sells at par

Power Solutions Ltd. issues a $10,500,000, five year. 4.5% bond with semi-annual interest payments. Underwriting costs.pold up front are $672,000. The bond sells at par Required: 1. How much cash does Power receive when the bond is issued? 2. What is the effective interest rate on the bond? (Round your answer to the nearest whole percentage) % Prepare an amortization table using the effective interest method of amortization. Complete the first four payments only (Round your effective interest rate to the nearest whole percentage and your final answers to the nearest whole dollar) Period Cash interest Pald Interest Expense Dorp Closing Net Amortization Bond Liab. op tance 1 2 4

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