Create a new What SUP Bond Amortization Schedule
Using the ch5-04 file to start your work, create a worksheet (similar to the one created in this chapter) that calculates the bond proceeds for a $2,500,000, 10-year, 4 percent stated interest bond issued when the market interest rate is 5 percent. Include a bond amortization schedule and use names in the work-sheet, as illustrated in the chapter (You will also need to format the cells.) Save your file as ch5-04_student_name (replacing student_name with your name).
a. Print the newly completed worksheet in Value view, with your name and date printed in the lower left footer and the file name in the lower right footer.
b. Use the Scenario Manager to create a scenario using stated rates of 3, 3.5, 4.5, and 6 percent to calculate alternative annual interest payments and bond proceeds. Print the resulting summary worksheet.
c. Use Excel’s goal seek feature to calculate the stated interest rate it would have to pay under the original bond analysis (in part a) to achieve bond proceeds of $2,600,000. Print the resulting worksheet in Value view, with your name and date printed in the lower left footer and the file name in the lower right footer.