Problem:
ABC issues $20M in bonds on January 1, 2004. The bonds mature in 30 years and pay interest at the end of each semi-annual period on July 1 and January 1. The bonds have a coupon rate of 10% and were issued when the market rate of interest is 12%. Bond issue costs of $300,000 were paid in cash.
1. Calculate the proceeds of the bond
2. Prepare an amortization table