Temptation Vacations issues $40 million in bonds on January 1, 2021, that pay interest semiannually on...
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Temptation Vacations issues $40 million in bonds on January 1, 2021, that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: (1) (2) (3) (4) (5) Carrying Cash Paid for Interest Decrease in Date Interest Expense Carrying Value Value $45,020,555 44,946,069 44,869,721 1/1/2021 6/30/2021 $1,200,000 $1,125,514 1,123,652 $74,486 76,348 12/31/2021 1,200,000 2. What is the original issue price of the bonds? (Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000)) Issue price 3. What is the face amount of the bonds? (Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000)) Face amount 4. What is the stated annual interest rate? Stated annual interest rate 5. What is the market annual interest rate? (Round your answer to the nearest whole percent.) Market annual interest rate Temptation Vacations issues $40 million in bonds on January 1, 2021, that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: (1) (2) (3) (4) (5) Carrying Cash Paid for Interest Decrease in Date Interest Expense Carrying Value Value $45,020,555 44,946,069 44,869,721 1/1/2021 6/30/2021 $1,200,000 $1,125,514 1,123,652 $74,486 76,348 12/31/2021 1,200,000 2. What is the original issue price of the bonds? (Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000)) Issue price 3. What is the face amount of the bonds? (Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000)) Face amount 4. What is the stated annual interest rate? Stated annual interest rate 5. What is the market annual interest rate? (Round your answer to the nearest whole percent.) Market annual interest rate
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Part 2 Original Issue price 45020555 Part 3 Face amount 40000... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
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