bond premium amortization schedule excel

The calculation may also be done with interest rates that vary over time. If the Premium is known, the Payments or the Yield (interest rate) may be calculated when the other data is known Simply leave the unknown field blank. The Results screen gives us a Principal of 108,530.20, thus a Premium of 8,530.00. The “Principal” is left blank (0.00) and will be our Bonds payable + Premium on bonds payable

The 4000 payment is calculated: 100,000 x. What is the premium on 5-year, 8% bonds, sold to yield 6%? Bonds payable: 100,000.00 The first calculation below may use Fixed (unique interest rates) or Variable rates.Ĭalculation of bond premium (schedule of bond premium amortization – effective interest method) (Refer to Appendix A for illustration.)Įnter answers using two decimal places.The dollar ($) has been used in these examples, but any other currency (€, £, F, ¥, R, DA, Rs… etc.) may be used. Prepare an amortization table in Excel to demonstrate the amortization of the book (carrying) value to the $500,000 maturity value at the end of the 20th semiannual period. On December 31, 2021, Kaplan, Inc., issues $500,000 of 9% bonds that pay interest semiannually and mature in 10 years (December 31, 2031).ī. Beginning Date balance Payment Interest 01/01/22 0 06/30/22 S S 12/31/22 2Ĭomputing Bond Issue Price and Preparing an Amortization Table in Excel The amortization schedule can be completed using the following Excel template: Amortization Schedule Using the figures from the amortization schedule created in Excel, complete the amortization schedule below for 2o22.Įnter answers using two decimal places.

Prepare an amortization table in Excel to demonstrate the amortization of the book (carrying) value to the 500,000 maturity value at the end of the 20th semiannual period. (Refer to Appendix A for illustration.)ī. Using the Excel PV worksheet function, compute the issue price assuming that the bonds' market rate is 8% per year compounded semiannually. On December 31, 2021, Kaplan, Inc., issues 500,000 of 9% bonds that pay interest semiannually and mature in 10 years (December 31, 2031).Ī. SOLVED: Computing Bond Issue Price and Preparing an Amortization Table in Excel

Bond premium amortization schedule excel