Esra Corporation_Bond Amortization Schedule

Theory 2 Excel Assignment – 10 points

Use Excel and the data provided below to calculate the price of the bond and create an amortization schedule (similar to the format reflected in the pdf file posted on blackboard). You should prepare an amortization schedule that is better than the example I provide in the pdf file, e.g., incorporate as many formulas as necessary, so that the worksheet automatically updates when the market rate of interest is changed.

Your Excel spreadsheet should work whether your bond results in a discount or premium. I should be able to manipulate certain data, for example if I change the present value rates or market rate of interest rate, the formulas should still work correctly when determining the present value of the bond. The file should be formatted properly; with proper print ranges.

I suggest you go to Google and look up the IF Then formulas/functions and Absolute Value function for Excel before you determine how to input your formulas or reference certain cells.

Once you have completed this assignment make sure you place your first and last names in the first cell of your worksheet. The file name should be your last name and first name together. For example, if I where submitting the file I would name it as follows: cabandavid

Once you save and name the file correctly, both e-mail it to me and submit it through blackboard. See the syllabus for due date.

On January 1, 2012, Esra Corporation sold 4% bonds having a maturity value of $300,000. The market determined that 5% was the appropriate rate of interest, given the risks that Esra Corporation to bondholders. The bonds are dated January 1, 2012, mature January 1, 2015, and pay interest on June 30 and December 31 of each year.