A company would like to have a bond offering to raise $100M for the construction of a new plant. By the time the bond goes to market, they receive only $93M. The bond is a 10 year offering with quarterly payments. The annual percentage interest rate is 3.5%. What is the actual interest on the bond.

Develop an MS Excel spreadsheet which will automatically calculate the actual bond interest given the type of information presented in Problem 1. Include the possibilities of other costs such as printing fees and annual service costs, as shown in the class notes. Note that MS Excel has several built in financial functions (PV< FV) - you should use these where possible. Compare your results in Problem 2 with the YIELD function in MS Excel.