13) The Corporation has 1,000,000 of 8% bonds outstanding. Interest is payable each July and January 1 and the maturity date is 10 years from today. If the current market rate of interest is 10%, what is the current market value of the bonds?
14) The Corporation has just borrowed $100,000 from the bank. The term of the loan is five years, and the interest rate is 9%. The loan is due in 5 equal annual installments at the end of each year. Complete the following amortization table.
Year Loan amount Pymt Interest Amoritzation
Please find the solutions in the attached files.
13) The Corporation has 1,000,000 of 8% bonds outstanding. Interest is payable ...
With both narrative statements and formulas, the solution calculates the answers to the two problems.