7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

1/24

Face Value Period Contract rate Interest to be paid

5 10.00%

1,000,000.00$ 10 5.00% 50,000.00$

Cash payment to creditors:

Principal 1,000,000$

Interest to be paid for 10 period 500,000$

Cash payment to creditors:

Cash receipt from investors

Cash borrowing

Cash Borrowing

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

2/24

Market price rate Carrying Value (PV) Semiannual Interest to be paid

Interest Period

98.00% 980,000.00$ Issued date

1 50,000$2 50,000$

3 50,000$

4 50,000$

5 50,000$

6 50,000$

7 50,000$

8 50,000$

9 50,000$

10 50,000$

1,500,000$

980,000$

520,000$

Straight Line Method, Discount on Bond

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

3/24

Interest to be Discount Unamortization Bond carrying

recorded amortization discount value

20,000$ 980,000$

52,000$ 2,000$ 18,000$ 982,000$52,000$ 2,000$ 16,000$ 984,000$

52,000$ 2,000$ 14,000$ 986,000$

52,000$ 2,000$ 12,000$ 988,000$

52,000$ 2,000$ 10,000$ 990,000$

52,000$ 2,000$ 8,000$ 992,000$

52,000$ 2,000$ 6,000$ 994,000$

52,000$ 2,000$ 4,000$ 996,000$

52,000$ 2,000$ 2,000$ 998,000$

52,000$ 2,000$ -$ 1,000,000$

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

4/24

Face Value Period Contract rate Interest to be paid Market price rate

5 10.00%

1,000,000.00$ 10 5.00% 50,000.00$ 102.00%

Cash payment to creditors:

Principal 1,000,000$

Interest to be paid for 10 period 500,000$

Cash payment to creditors: 1,500,000$

Cash receipt from investors 1,020,000$

Cash borrowing 480,000$

Cash Borrowing

Straight

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

5/24

Carrying Value (PV) Semiannual Interest to be paid Interest to be Premium

Interest Period recorded amortization

1,020,000.00$ Issued date

1 50,000$ 48,000$ 2,000$2 50,000$ 48,000$ 2,000$

3 50,000$ 48,000$ 2,000$

4 50,000$ 48,000$ 2,000$

5 50,000$ 48,000$ 2,000$

6 50,000$ 48,000$ 2,000$

7 50,000$ 48,000$ 2,000$

8 50,000$ 48,000$ 2,000$

9 50,000$ 48,000$ 2,000$

10 50,000$ 48,000$ 2,000$

Line Method, Prmium on Bond

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

6/24

Unamortization Bond carrying

premium value

20,000$ 1,020,000$

18,000$ 1,018,000$16,000$ 1,016,000$

14,000$ 1,014,000$

12,000$ 1,012,000$

10,000$ 1,010,000$

8,000$ 1,008,000$

6,000$ 1,006,000$

4,000$ 1,004,000$

2,000$ 1,002,000$

-$ 1,000,000$

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

7/24

Face Value Period Contract rate Interest to be paid Market rate

5 10.00% 12.00%

1,000,000.00$ 10 5.00% 50,000.00$ 6.00%

Cash payment to creditors:

Principal 1,000,000$

Interest to be paid for 10 peri 500,000$

Cash payment to creditors: 1,500,000$

Cash receipt from investors 926,399$

Cash borrowing 573,601$

In

Cash Borrowing

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

8/24

Carrying Value (PV) Semiannual Interest to be paid Interest to be Discount

Interest Period recorded amortization

926,399$ Issued date

1 50,000$ 57,360$ 7,360$2 50,000$ 57,360$ 7,360$

3 50,000$ 57,360$ 7,360$

4 50,000$ 57,360$ 7,360$

5 50,000$ 57,360$ 7,360$

6 50,000$ 57,360$ 7,360$

7 50,000$ 57,360$ 7,360$

8 50,000$ 57,360$ 7,360$

9 50,000$ 57,360$ 7,360$

10 50,000$ 57,360$ 7,360$

terest Method, Discount on Bond

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

9/24

Unamortization Bond carrying

Dicount value

73,601$ 926,399$

66,241$ 933,759$58,881$ 941,119$

51,521$ 948,479$

44,161$ 955,839$

36,800$ 963,200$

29,440$ 970,560$

22,080$ 977,920$

14,720$ 985,280$

7,360$ 992,640$

0$ 1,000,000$

F4

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

10/24

Face Value Period Contract rate Interest to be paid Market rate

5 10.00% 8.00%

1,000,000.00$ 10 5.00% 50,000.00$ 4.00%

Cash payment to creditors:

Principal 1,000,000$

Interest to be paid for 10 per 500,000$

Cash payment to creditors: 1,500,000$

Cash receipt from investors 1,081,109$

Cash borrowing 418,891$

Inter

Cash Borrowing

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

11/24

Carrying Value (PV) Semiannual Interest to be paid Interest to be Premium

Interest Period recorded amortization

1,081,109$ Issued date

1 50,000$ 41,889$ 8,111$2 50,000$ 41,889$ 8,111$

3 50,000$ 41,889$ 8,111$

4 50,000$ 41,889$ 8,111$

5 50,000$ 41,889$ 8,111$

6 50,000$ 41,889$ 8,111$

7 50,000$ 41,889$ 8,111$

8 50,000$ 41,889$ 8,111$

9 50,000$ 41,889$ 8,111$

10 50,000$ 41,889$ 8,111$

st Method, Premium on Bond

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

12/24

Unamortization Bond carrying

premium value

81,109$ 1,081,109$

72,998$ 1,072,998$64,887$ 1,064,887$

56,776$ 1,056,776$

48,665$ 1,048,665$

40,554$ 1,040,554$

32,444$ 1,032,444$

24,333$ 1,024,333$

16,222$ 1,016,222$

8,111$ 1,008,111$

(0)$ 1,000,000$

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

13/24

Face Value Period Contract rate Interest to be paid Market rate

10 8.00% 9.00%

100,000.00$ 20 4.00% 4,000.00$ 4.50%

Cash payment to creditors:

Principal 100,000$

Interest to be paid for 10 peri 80,000$

Cash payment to creditors: 180,000$

Cash receipt from investors 93,496$

Cash borrowing 86,504$

Stra

Cash Borrowing

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

14/24

Carrying Value (PV) Semiannual Interest to be paid Interest to be Discount

Interest Period recorded amortization

93,496$ Issued date

1 4,000$ 4,325$ 325$2 4,000$ 4,325$ 325$

3 4,000$ 4,325$ 325$

4 4,000$ 4,325$ 325$

5 4,000$ 4,325$ 325$

6 4,000$ 4,325$ 325$

7 4,000$ 4,325$ 325$

8 4,000$ 4,325$ 325$

9 4,000$ 4,325$ 325$

10 4,000$ 4,325$ 325$

11 4,000$ 4,325$ 325$

12 4,000$ 4,325$ 325$13 4,000$ 4,325$ 325$

14 4,000$ 4,325$ 325$

15 4,000$ 4,325$ 325$

16 4,000$ 4,325$ 325$

17 4,000$ 4,325$ 325$

18 4,000$ 4,325$ 325$

19 4,000$ 4,325$ 325$

20 4,000$ 4,329$ 329$

ight line Method, Discount on Bond

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

15/24

Unamortization Bond carrying

Dicount value

6,504$ 93,496$ 6,504$

6,179$ 93,821$ 325$5,854$ 94,146$

5,529$ 94,471$

5,204$ 94,796$

4,879$ 95,121$

4,554$ 95,446$

4,229$ 95,771$

3,904$ 96,096$

3,579$ 96,421$

3,254$ 96,746$

2,929$ 97,071$

2,604$ 97,396$2,279$ 97,721$

1,954$ 98,046$

1,629$ 98,371$

1,304$ 98,696$

979$ 99,021$

654$ 99,346$

329$ 99,671$ F4

-$ 100,000$

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

16/24

Face Value Period Contract rate Interest to be paid Market rate

10 8.00% 9.00%

100,000.00$ 20 4.00% 4,000.00$ 4.50%

Cash payment to creditors:

Principal 100,000$

Interest to be paid for 10 peri 80,000$

Cash payment to creditors: 180,000$

Cash receipt from investors 93,496$

Cash borrowing 86,504$

I

Cash Borrowing

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

17/24

Carrying Value (PV) Semiannual Interest to be Interest to be paid

Interest Period recorded

93,496$ Issued date

1 4,207$ 4,000$2 4,217$ 4,000$

3 4,226$ 4,000$

4 4,237$ 4,000$

5 4,247$ 4,000$

6 4,258$ 4,000$

7 4,270$ 4,000$

8 4,282$ 4,000$

9 4,295$ 4,000$

10 4,308$ 4,000$

11 4,322$ 4,000$

12 4,336$ 4,000$13 4,352$ 4,000$

14 4,367$ 4,000$

15 4,384$ 4,000$

16 4,401$ 4,000$

17 4,419$ 4,000$

18 4,438$ 4,000$

19 4,458$ 4,000$

20 $4,479 4,000$

nterest Method, Discount on Bond

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

18/24

Discount Unamortization Bond carrying

amortization Dicount value

6,504$ 93,496$

207$ 6,297$ 93,703$217$ 6,080$ 93,920$ $6,504

226$ 5,854$ 94,146$ $6,025

237$ 5,617$ 94,383$

247$ 5,370$ 94,630$

258$ 5,111$ 94,888$

270$ 4,841$ 95,158$

282$ 4,559$ 95,440$

295$ 4,265$ 95,735$

308$ 3,957$ 96,043$

322$ 3,635$ 96,365$

336$ 3,298$ 96,701$352$ 2,947$ 97,053$

367$ 2,579$ 97,420$

384$ 2,195$ 97,804$

401$ 1,794$ 98,205$

419$ 1,375$ 98,625$

438$ 937$ 99,063$

458$ 479$ 99,521$ F4

$479 -$ 100,000$

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

19/24

Face Value Period Contract rate Interest to be paid Market rate

10 11.00% 10.00%

100,000.00$ 20 5.50% 5,500.00$ 5.00%

Cash payment to creditors:

Principal 100,000$

Interest to be paid for 10 peri 110,000$

Cash payment to creditors: 210,000$

Cash receipt from investors 106,231$

Cash borrowing 103,769$

Straight

Cash Borrowing

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

20/24

Carrying Value (PV) Semiannual Interest to be Interest to be Premium to be

Interest Period paid recorded amortized

106,231$ Issued date

1 5,500$ 5,188$ 312$2 5,500$ 5,188$ 312$

3 5,500$ 5,188$ 312$

4 5,500$ 5,188$ 312$

5 5,500$ 5,188$ 312$

6 5,500$ 5,188$ 312$

7 5,500$ 5,188$ 312$

8 5,500$ 5,188$ 312$

9 5,500$ 5,188$ 312$

10 5,500$ 5,188$ 312$

11 5,500$ 5,188$ 312$

12 5,500$ 5,188$ 312$13 5,500$ 5,188$ 312$

14 5,500$ 5,188$ 312$

15 5,500$ 5,188$ 312$

16 5,500$ 5,188$ 312$

17 5,500$ 5,188$ 312$

18 5,500$ 5,188$ 312$

19 5,500$ 5,188$ 312$

20 5,500$ 5,197$ 303$

line Method, Premium on Bond

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

21/24

Unamortized Bond carrying

Premium value

6,231$ 106,231$ 6,231$

5,919$ 105,919$ $3125,607$ 105,607$

5,295$ 105,295$

4,983$ 104,983$

4,671$ 104,671$

4,359$ 104,359$

4,047$ 104,047$

3,735$ 103,735$

3,423$ 103,423$

3,111$ 103,111$

2,799$ 102,799$

2,487$ 102,487$2,175$ 102,175$

1,863$ 101,863$

1,551$ 101,551$

1,239$ 101,239$

927$ 100,927$

615$ 100,615$

303$ 100,303$ F4

-$ 100,000$

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

22/24

Face Value Period Contract rate Interest to be paid Market rate

10 11.00% 10.00%

100,000.00$ 20 5.50% 5,500.00$ 5.00%

Cash payment to creditors:

Principal 100,000$

Interest to be paid for 10 peri 110,000$

Cash payment to creditors: 210,000$

Cash receipt from investors 106,231$

Cash borrowing 103,769$

Inter

Cash Borrowing

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

23/24

Carrying Value (PV) Semiannual Interest to be Interest to be Premium to be

Interest Period recorded paid amortized

106,231$ Issued date

1 5,312$ 5,500$ 188$2 5,302$ 5,500$ 198$

3 5,292$ 5,500$ 208$

4 5,282$ 5,500$ 218$

5 5,271$ 5,500$ 229$

6 5,259$ 5,500$ 241$

7 5,247$ 5,500$ 253$

8 5,235$ 5,500$ 265$

9 5,222$ 5,500$ 278$

10 5,208$ 5,500$ 292$

11 5,193$ 5,500$ 307$

12 5,178$ 5,500$ 322$13 5,162$ 5,500$ 338$

14 5,145$ 5,500$ 355$

15 5,127$ 5,500$ 373$

16 5,108$ 5,500$ 392$

17 5,089$ 5,500$ 411$

18 5,068$ 5,500$ 432$

19 5,046$ 5,500$ 454$

20 5,024$ 5,500$ 476$

st Method, Premium on Bond

7/30/2019 Table of Calculation Interest Expense and Bond Discount (both the bonds sold at a discount and premium.)

24/24

Unamortized Bond carrying

premium value

6,231$ 106,231$ 6,231$

6,043$ 106,043$ 5,755$5,845$ 105,845$

5,637$ 105,637$

5,419$ 105,419$

5,190$ 105,190$

4,949$ 104,949$

4,697$ 104,697$

4,431$ 104,431$

4,153$ 104,153$

3,861$ 103,861$

3,554$ 103,554$

3,231$ 103,231$2,893$ 102,893$

2,538$ 102,538$

2,165$ 102,165$

1,773$ 101,773$

1,361$ 101,361$

929$ 100,929$

476$ 100,476$ F4

-$ 100,000$