**Bond Valuation Task**On June 30, 2021, the market interest rate is 5%. Champs Corporation issues $600,000 of 10%, 30-year bonds payable. The bonds pay interest on June 30 and December 31. The company amortizes bond premium using the effective-interest method.**Instructions:**1. **Calculate Issue Price:** - Use the PV (Present Value) function in Excel to calculate the issue price of the bonds. - Round your answer to the nearest whole dollar. - *Input Required:* The issue price of the bonds is: [_____]**Requirements:**1. Use the PV function in Excel to calculate the issue price of the bonds.2. Prepare a bond amortization table for the first four semiannual interest periods.3. Record the issuance of bonds payable on June 30, 2021; the payment of interest on December 31, 2021; and the payment of interest on June 30, 2022.You can access the full instructions and details via the provided requirements link.**Note:** - Below the task description, there is an option to either print or mark as done upon completion.

Par value = $600,000Coupon rate = 10%Period = 30 yearsMarket rate of interest = 5%Isssue price of the bonds = $1,063,629.85

Answered: On June 30, 2021, the market interest…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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