Question 1: 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?
Question 2: 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
1
2
3
4
5