The University Club recently issued $1,500,000 of 10-year, 9% bonds at an effective interest rate of 10%. Bond interest is payable annually. You have been asked to calculate the issuance price of the bonds and prepare amortization schedules for any discount or premium. The worksheet BONDS has been provided to assist you. Note that the worksheet contains a scratch pad at the bottom that has been preprogrammed to automatically compute and display the relevant cash flows needed for bond pricing .

Question

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Answer 1

Textbook Question

Chapter 11, Problem 1R

The University Club recently issued $1,500,000 of 10-year, 9% bonds at an effective interest rate of 10%. Bond interest is payable annually.

You have been asked to calculate the issuance price of the bonds and prepare amortization schedules for any discount or premium. The worksheet BONDS has been provided to assist you. Note that the worksheet contains a scratch pad at the bottom that has been preprogrammed to automatically compute and display the relevant cash flows needed for bond pricing.

Expert Solution & Answer

To determine

Calculate the issue price of bonds and prepare amortization schedules for any discount or premium.

Explanation of Solution

Calculate the issue price of bonds and prepare amortization schedules for any discount and premium.

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 1

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 2

Table (1)

The formulae for the above calculation are as follows:

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 3

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 4

Figure (2)

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Answer 2

Textbook Question

Chapter 11, Problem 1R

The University Club recently issued $1,500,000 of 10-year, 9% bonds at an effective interest rate of 10%. Bond interest is payable annually.

You have been asked to calculate the issuance price of the bonds and prepare amortization schedules for any discount or premium. The worksheet BONDS has been provided to assist you. Note that the worksheet contains a scratch pad at the bottom that has been preprogrammed to automatically compute and display the relevant cash flows needed for bond pricing.

Expert Solution & Answer

To determine

Calculate the issue price of bonds and prepare amortization schedules for any discount or premium.

Explanation of Solution

Calculate the issue price of bonds and prepare amortization schedules for any discount and premium.

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 1

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 2

Table (1)

The formulae for the above calculation are as follows:

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 3

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 4

Figure (2)

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Answer 3

Textbook Question

Chapter 11, Problem 1R

The University Club recently issued $1,500,000 of 10-year, 9% bonds at an effective interest rate of 10%. Bond interest is payable annually.

You have been asked to calculate the issuance price of the bonds and prepare amortization schedules for any discount or premium. The worksheet BONDS has been provided to assist you. Note that the worksheet contains a scratch pad at the bottom that has been preprogrammed to automatically compute and display the relevant cash flows needed for bond pricing.

Expert Solution & Answer

To determine

Calculate the issue price of bonds and prepare amortization schedules for any discount or premium.

Explanation of Solution

Calculate the issue price of bonds and prepare amortization schedules for any discount and premium.

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 1

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 2

Table (1)

The formulae for the above calculation are as follows:

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 3

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 4

Figure (2)

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Answer 4

Textbook Question

Chapter 11, Problem 1R

The University Club recently issued $1,500,000 of 10-year, 9% bonds at an effective interest rate of 10%. Bond interest is payable annually.

You have been asked to calculate the issuance price of the bonds and prepare amortization schedules for any discount or premium. The worksheet BONDS has been provided to assist you. Note that the worksheet contains a scratch pad at the bottom that has been preprogrammed to automatically compute and display the relevant cash flows needed for bond pricing.

Expert Solution & Answer

To determine

Calculate the issue price of bonds and prepare amortization schedules for any discount or premium.

Explanation of Solution

Calculate the issue price of bonds and prepare amortization schedules for any discount and premium.

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 1

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 2

Table (1)

The formulae for the above calculation are as follows:

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 3

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 4

Figure (2)

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Calculate the issue price of bonds and prepare amortization schedules for any discount or premium.

Explanation of Solution

Calculate the issue price of bonds and prepare amortization schedules for any discount and premium.

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 1

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 2

Table (1)

The formulae for the above calculation are as follows:

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 3

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 4

Figure (2)

Answer 8

Expert Solution & Answer

To determine

Calculate the issue price of bonds and prepare amortization schedules for any discount or premium.

Explanation of Solution

Calculate the issue price of bonds and prepare amortization schedules for any discount and premium.

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 1

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 2

Table (1)

The formulae for the above calculation are as follows:

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 3

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 4

Figure (2)

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Calculate the issue price of bonds and prepare amortization schedules for any discount or premium.

Answer 12

Explanation of Solution

Calculate the issue price of bonds and prepare amortization schedules for any discount and premium.

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 1

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 2

Table (1)

The formulae for the above calculation are as follows:

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 3

Excel Applications for Accounting Principles, Chapter 11, Problem 1R , additional homework tip 4

Figure (2)

Answer 13

Ch. 11 - The University Club recently issued 1,500,000 of...Ch. 11 - The bond pricing formula utilizes the NPV (Net...Ch. 11 - Prob. 3R Ch. 11 - Prob. 4R Ch. 11 - Use the worksheet to compute the bond issue price...Ch. 11 - Use the worksheet to compute the bond issue price...Ch. 11 - Prob. 7R Ch. 11 - a. Reset the Data Section to its initial values....

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