Questions Paul Dirac & Associates begin operations on $1/1/$X$1$ by issuing a $3\mathrm{.}00$ year term $($Bullet$)$ bond with a par value of $$4,800,000.$ The bond pays interest semiannually. On the date of issuance, the annual coupon rate of the bond is $4\mathrm{.}250\%$ while the annual required rate of return in the debt capital markets $($the discount rate$)$ is $5\mathrm{.}500\%.$ Dirac assumes that he will earn $$1,600,000$ in cash revenues and incur cash operating expenses of $44\mathrm{.}000\%$ of revenues each $6$ month period for the next $3\mathrm{.}00$ fiscal years. The corporate tax rate is assumed to be $21\mathrm{.}00\%.1)$ Create an amortization table for the Bond. $2)$ What is the Price of the bond? What is the Value of any discount or premium? $3)$ Provide all journal entries and T$-$accounts for this transaction over the next $3$ years. $4)$ Based on the information in the problem, create semi$-$annual pro$-$forma financial statements $($I$/$S$,$ SRE, B$/$S$)$ for Dirac & Associates for the next $3$ years $(6$ Semi$-$annual periods$).$ QUESTION $1$

Paul Dirac $\backslash$& Associates begin operations on $\backslash (1/1/\backslash$mathrm$\{$X$\}1\backslash )$ by issuing a $3\mathrm{.}00$ year term $($Bullet$)$ bond with a par value of $\backslash (\backslash$$ $4,800,000\backslash ).$ The bond pays interest semiannually. On the date of issuance, the annual coupon rate of the bond is $\backslash (4\mathrm{.}250\backslash \%\backslash )$ while the annual required rate of return in the debt capital markets $($the discount rate$)$ is $\backslash (5\mathrm{.}500\backslash \%\backslash ).$ Dirac assumes that he will earn $\backslash (\backslash$$ $1,600,000\backslash )$ in cash revenues and incur cash operating expenses of $\backslash (44\mathrm{.}000\backslash \%\backslash )$ of revenues each $6$ month period for the next $3\mathrm{.}00$ fiscal years. The corporate tax rate is assumed to be $\backslash (21\mathrm{.}00\backslash \%\backslash ).$

Questions

$1)$ Create an amortization table for the Bond.

$2)$ What is the Price of the bond? What is the Value of any discount or premium?

$3)$ Provide all journal entries and T$-$accounts for this transaction over the next $3$ years.

$4)$ Based on the information in the problem, create semi$-$annual pro$-$forma financial statements $($l$/$S$,$ SRE, B$/$S$)$ for Dirac $\backslash$& Associates for the next $3$ years $(6$ Semi$-$annual periods$).$