On January 1, 2016, the Blue Devil Corporation issued $20,000,000 of ten-year bonds. The bonds carried a stated interest rate of 5 percent, with interest payable semiannually on June 30 and December 31.

1. Using the Excel PV function, determine the proceeds of the bond issuance assuming a 6 percent effective (market) interest rate. Write your function and the answer below: PV(rate,nper,pmt,fv,type) =

2. Create an amortization table In Excel for the entire term of the bonds using the effective interest method of amortization. A formula or copying a formula is required for all cells that contain numbers.

3. Using the Excel PV function, determine the proceeds of the bond issuance assuming a 4 percent effective (market) interest rate. Write your function and the answer below:

4. Using sheet 2 of the same file you created for step 2, repeat step 2 above assuming that the market interest rate is 4 percent.