For Discounted Bond

2010
Coupon rate Begining Year 0
-5.00% $ 1,000,000.00
Rate
6.00% Present Value
Term
5 $ (957,876.36)
95.7876362144
Amortised Cost $ 957,876.36

Amortisation $ 7,472.58
Interest Expense $ 57,472.58
Interest Paid $ 50,000.00

Under Straight Line

amortisation $ 8,424.73
Interest Expense $ 58,424.73

For Premium Bond

2010
Coupon rate Begining Year 0
-5.00% $ 1,000,000.00
Rate
4.00% Present Value
Term
5 $ (1,044,518.22)
104.451822331
Amortised Cost $ 1,044,518.22

Amortisation $ (8,219.27)
Interest Expense $ 41,780.73
Interest Paid $ 50,000.00

Under Straight Line

amortisation $ (8,903.64)
Interest Expense $ 41,096.36
r Discounted Bond
2011 2012 2013 2014 2015
Begining Year 1 Begining Year 2 Begining Year 3 Begining Year 4 Begining Year 5
$ (50,000.00) $ (50,000.00) $ (50,000.00) $ (50,000.00) $ (1,050,000.00)

-47169.81132075 -44499.82200071 -41980.96415162 -39604.6831619 -784621.0815094

$ 965,348.94 $ 973,269.88 $ 981,666.07 $ 990,566.04 $ 1,000,000.00

$ 7,920.94 $ 8,396.19 $ 8,899.96 $ 9,433.96

$ 57,920.94 $ 58,396.19 $ 58,899.96 $ 59,433.96
$ 50,000.00 $ 50,000.00 $ 50,000.00 $ 50,000.00

$ 8,424.73 $ 8,424.73 $ 8,424.73 $ 8,424.73

$ 58,424.73 $ 58,424.73 $ 58,424.73 $ 58,424.73

ium Bond

2011 2012 2013 2014 2015

Begining Year 1 Begining Year 2 Begining Year 3 Begining Year 4 Begining Year 5
$ (50,000.00) $ (50,000.00) $ (50,000.00) $ (50,000.00) $ (1,050,000.00)

-48076.92307692 -46227.81065089 -44449.81793355 -42740.20955149 -863023.4620973

$ 1,036,298.95 $ 1,027,750.91 $ 1,018,860.95 $ 1,009,615.38 $ 1,000,000.00

$ (8,548.04) $ (8,889.96) $ (9,245.56) $ (9,615.38)

$ 41,451.96 $ 41,110.04 $ 40,754.44 $ 40,384.62
$ 50,000.00 $ 50,000.00 $ 50,000.00 $ 50,000.00

$ (8,903.64) $ (8,903.64) $ (8,903.64) $ (8,903.64)

$ 41,096.36 $ 41,096.36 $ 41,096.36 $ 41,096.36
Total Amortisation Cost or
the discount $ 42,123.64

Total Amortisation Cost or

the discount $ (44,518.22)