Please help find issue price of bonds Requirements-Using PV function in excel calculate issue price of bonds Prepare effective interest amortization table for bonds through the first three interest payments Record ranking corporations issuance of bonds on March 31 2018. And payment of first semiannual interest amount and amortization of bond and discount on September 30,209. Explanations are not required. ### Bond Issuance and Pricing**Scenario:**Rankin Corporation issued $620,000 of 7%, 15-year bonds payable on March 31, 2019. The market interest rate at the date of issuance was 10%, and the bonds pay interest semiannually. Rankin Corporation’s year-end is March 31.**Task:**1. **Calculate the Issue Price of the Bonds:** - Use the Present Value (PV) function in Excel. - Round the answer to the nearest whole dollar.**Objective:**- Determine the issue price of the bonds, considering the difference between the stated interest rate (7%) and the market interest rate (10%). This involves calculating the present value of future cash flows derived from bond interest payments and the principal amount, using the market interest rate for discounting.**Excel Formula:**- Use the PV function to compute the present value of the bond's future cash flows.- Consider semiannual interest payments and a discount rate adjusted for these periods.**Calculation Details:**- **Interest Payments:** Calculate semiannual interest from the bond’s face value at the stated rate.- **Discount Rate:** Convert the annual market interest rate to a semiannual rate.- **Periods:** Calculate total periods based on semiannual payments.After computing, input the result in the designated area:- The issue price of the bonds is **$ [Answer]**. This task demonstrates the application of present value concepts in bond pricing and provides insights into the impact of interest rate fluctuations on bond valuations.

calculation of issue price face value of bond -620,000 discount rate 10%…

Please help find issue price of bonds Requirements- Using PV function in excel calculate issue price of bonds Prepare effective interest amortization table for bonds through the first three interest payments Record ranking corporations issuance of bonds on March 31 2018. And payment of first semiannual interest amount and amortization of bond and discount on September 30,209. Explanations are not require

Please help find issue price of bonds Requirements- Using PV function in excel calculate issue price of bonds Prepare effective interest amortization table for bonds through the first three interest payments Record ranking corporations issuance of bonds on March 31 2018. And payment of first semiannual interest amount and amortization of bond and discount on September 30,209. Explanations are not require

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please answer all of the entries in the following photos, thank you! (do not mind my answers, they might be incorrect).
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