1.

)
1
Acquisition Cost 946,000.00
Yield Interest 10%
94,600.00
Interest 40,000.00
54,600.00
Acquisition Cost 946,000.00
Interest 40,000.00
906,000.00
54,600.00
Investments in Bonds 960,600.00

2&3.

Interest Interest Present

Year Received Income Amortization Value
453,567.00
20x1 50,000.00 63,499.38 13,499.38 467,066.38
20x2 50,000.00 65,389.29 15,389.29 482,455.67

5
8% 0.04
2 500,000
0.04 20,000.00
6.)
Interest 152,000
Balance 38,000
114,000
46,500
160,500

5.)
(0.08/2) 0.04
500,000
20000