Chart Values are based on:
n= 7 Years
i= 8% Annual
Cash Flow Table Value * Amount = Present Value
Principal 0.5835 * $1,00,000 = $58,349
Interest (Annuity) [$100,000*8%] 5.2064 * $8,000 = $41,651
Price of Bonds $1,00,000
Park Corporation intends to issue a $2,800,000 face value bond with an interest rate of 7%. The bond has a term of 10 years and accrues interest semi-annually on June 30th and December 31st. All bonds were sold on January 1st of this year.
Loan Amortization
To get the number of monthly payments, calculate the interest expense by multiplying the interest rate by the loan balance and dividing by 12. The principal for a given month is the total monthly payment (lump sum) less the interest payment for that month.
The effective interest rate method is the method used to amortize bonds and indicates the actual interest rate applied to any period of time prior to the maturity of the bond. This is based on the book value of the bond at the beginning of each accounting period.
Learn more about Cash Flow here;
brainly.com/question/735261
#SPJ4