The texas general land office is accused of mishandling funds earmarked for hurricane relief and recovery. who is responsible fo
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Answer:
attached table
Explanation:
We use goal seek of excel to determinate the market rate:
Which is the rate that discounting the coupon payment and maturity matches the 5,421,236 we receive for the bond:
C 200,000.000
time 10
rate 0.<em>030117724</em>
PV $1,705,016.0533
Maturity 5,000,000.00
time 10.00
rate <em>0.030117724</em>
PV 3,716,219.95
PV c $1,705,016.0533
PV m $3,716,219.9467
Total $5,421,236.0000
Now, we determiante the schedule by doing as follow:
carrying value x market rate = interest expense
cash outlay per period: face value x coupon rate
the amortization will be the difference
after each payment we adjust the carrying value by subtracting the amortization
