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    Effective Interest Rate Method Excel Template

    Uploaded by

    Angeline Dolosa

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Effective Interest Rate Method Excel Template

    Uploaded by

    Angeline Dolosa
    958 views49 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    958 views49 pages

    Effective Interest Rate Method Excel Template

    Uploaded by

    Angeline Dolosa

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 49

    Effective Interest Method Excel Template (for Discount Bonds)

    Face Value: $100,000


    Stated Rate: 6.000%
    Maturity Period (Years): 5
    Payment Frequency/Year: 4
    Market Rate/Effective Rate: 8.000%
    Issue Price: $91,824.28

    Debit Balance
    Interest Payment Interest Expense Amortization of in Discount on
    (Stated Rate x Face (Effective Rate x Discount on Bonds Bonds Payable
    Payment No. Value) Carrying Value) Payable Account Account
    Debit Interest Credit Discount on Bonds
    Credit Cash account Expenses account Payable account
    0 8175.72
    1 $1,500 $1,836.49 336.49 7839.23
    2 $1,500 $1,843.22 343.22 7496.02
    3 $1,500 $1,850.08 350.08 7145.94
    4 $1,500 $1,857.08 357.08 6788.85
    5 $1,500 $1,864.22 364.22 6424.63
    6 $1,500 $1,871.51 371.51 6053.12
    7 $1,500 $1,878.94 378.94 5674.19
    8 $1,500 $1,886.52 386.52 5287.67
    9 $1,500 $1,894.25 394.25 4893.42
    10 $1,500 $1,902.13 402.13 4491.29
    11 $1,500 $1,910.17 410.17 4081.12
    12 $1,500 $1,918.38 418.38 3662.74
    13 $1,500 $1,926.75 426.75 3236.00
    14 $1,500 $1,935.28 435.28 2800.72
    15 $1,500 $1,943.99 443.99 2356.73
    16 $1,500 $1,952.87 452.87 1903.86
    17 $1,500 $1,961.92 461.92 1441.94
    18 $1,500 $1,971.16 471.16 970.78
    19 $1,500 $1,980.58 480.58 490.20
    20 $1,500 $1,990.20 490.20 0.00
    or Discount Bonds)

    Credit Balance in Book Value or


    Bonds Payable Carrying Value of
    account the Bonds

    $100,000 $91,824.28
    $100,000 $92,160.77
    $100,000 $92,503.98
    $100,000 $92,854.06
    $100,000 $93,211.15
    $100,000 $93,575.37
    $100,000 $93,946.88
    $100,000 $94,325.81
    $100,000 $94,712.33
    $100,000 $95,106.58
    $100,000 $95,508.71
    $100,000 $95,918.88
    $100,000 $96,337.26
    $100,000 $96,764.00
    $100,000 $97,199.28
    $100,000 $97,643.27
    $100,000 $98,096.14
    $100,000 $98,558.06
    $100,000 $99,029.22
    $100,000 $99,509.80
    $100,000 $100,000.00
    Effective Interest Method Excel Template (for Premium Bonds)
    Face Value: $100,000
    Stated Rate: 7.000%
    Maturity Period (Years): 5
    Payment Frequency: 2
    Market Rate/Effective Rate: 5.000%
    Issue Price: $108,752.06

    Credit Balance
    Interest Payment Interest Expense Amortization of in Premium on
    (Stated Rate x Face (Effective Rate x Premium on Bonds Bonds Payable
    Payment No. Value) Carrying Value) Payable Account Account
    Debit Interest Debit Premium on Bonds
    Credit Cash account Expenses account Payable account
    0 8752.06
    1 $3,500 $2,718.80 781.20 7970.87
    2 $3,500 $2,699.27 800.73 7170.14
    3 $3,500 $2,679.25 820.75 6349.39
    4 $3,500 $2,658.73 841.27 5508.13
    5 $3,500 $2,637.70 862.30 4645.83
    6 $3,500 $2,616.15 883.85 3761.97
    7 $3,500 $2,594.05 905.95 2856.02
    8 $3,500 $2,571.40 928.60 1927.42
    9 $3,500 $2,548.19 951.81 975.61
    10 $3,500 $2,524.39 975.61 0.00
    r Premium Bonds)

    Credit Balance in Book Value or


    Bonds Payable Carrying Value of
    account the Bonds

    $100,000 $108,752.06
    $100,000 $107,970.87
    $100,000 $107,170.14
    $100,000 $106,349.39
    $100,000 $105,508.13
    $100,000 $104,645.83
    $100,000 $103,761.97
    $100,000 $102,856.02
    $100,000 $101,927.42
    $100,000 $100,975.61
    $100,000 $100,000.00
    Effective Interest Rate Method Excel Template

    By ExcelDemy.com
    https://www.exceldemy.com/effective-interest-rate-method-excel-template/

    © SOFTEKO (Parent Company of ExcelDemy.com)

    This spreadsheet, including all worksheets and associated content is a copyrighted


    work under the general copyright laws.

    Do not submit copies or modifications of this template to any website or online


    template gallery. But you can put a link of the page where the template is placed.

    Please review the following license agreement to learn how you may or may not
    use this template. Thank you.

    https://www.exceldemy.com/private-use-only-license/

    Do not delete this worksheet. If necessary, you may hide it by right-clicking on


    the tab and selecting the 'Hide' command.

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