Prepare by hand and scan, or use Word or Excel (NOT pages or numbers for Mac users)

The total interest expense on the bond is to be calculated for whole life of the bond

Bond Terms:

8%, 20-year bond,

Face Value: $500,000

Interest Payment dates, June 30 and July 31

Bond issued on 1/1/2020

Under each of the following three scenarios, CALCULATE (no JEs)

a)Cash received at issuance

b)The amount of the interest payment

c)The total interest expense on the bond

d)The total amount repaid at maturity

Scenarios:

1) Bond issued at face

2) Bond issued at 97.25

3) Bond issued at 102.5