P-12 Nilani Company purchased 100 Arpaho company bonds on April 1, 2007. The
P-12 Nilani Company purchased 100 Arpaho company bonds on April 1, 2007. The bonds were to pay interest semi-annually on March 31 and September 30 at an annual coupon rate of 9%. The bonds sold at an effective yield rate of 8%. The effect of brokerage fees is included in computing the effective yield. The bonds mature on March 31, 2009 at their face value of 1,000 per bond. Nilani�s fiscal year ends on September 30. Compare the price Nilani paid for Arapaho�s bond (determine the value of the interest payments and principal repayments) Prepare an amortization schedule for Nilani investment
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