Astro World issues $20 million in bonds on January 1, 2024 that pay interest semiannually on...

 

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Astro World issues $20 million in bonds on January 1, 2024 that pay interest semiannually on June 30 and December 31. A portion of the bond amortization schedule appears below: (4) Increase in (1) Date 1/1/2024 (2) Cash Paid (3) Interest Expense Carrying Value (5) Carrying Value 6/30/2024 12/31/2024 600,000 600,000 625,257 626,141 25,257 26,141 $ 17,864,493 17,889,750 17,915,891 Required: 1. Were the bonds issued at face amount, a discount, or a premium? 2. What is the original issue price of the bonds? (Enter your answer in dollars, not millions. (l.e., $5.5 million should be entered as 5,500,000)) 3. What is the face amount of the bonds? (Enter your answer in dollars, not millions. (l.e., $5.5 million should be entered as 5,500,000)) 4. What is the stated annual interest rate? 5. What is the market annual interest rate? 6. What is the total cash paid for interest assuming the bonds mature in 20 years? (Enter your answer in dollars, not millions. (l.e., $5.5 million should be entered as 5,500,000)) Answer is complete but not entirely correct. 1. The bonds were issued at A Discount 2. Issue price S 17.884,493 3. Face amount S 20,000,000 4. Stated annual interest rate 7% 5. Market annual interest rate 6. Total cash interest 7 96 S 58,000 Astro World issues $20 million in bonds on January 1, 2024 that pay interest semiannually on June 30 and December 31. A portion of the bond amortization schedule appears below: (4) Increase in (1) Date 1/1/2024 (2) Cash Paid (3) Interest Expense Carrying Value (5) Carrying Value 6/30/2024 12/31/2024 600,000 600,000 625,257 626,141 25,257 26,141 $ 17,864,493 17,889,750 17,915,891 Required: 1. Were the bonds issued at face amount, a discount, or a premium? 2. What is the original issue price of the bonds? (Enter your answer in dollars, not millions. (l.e., $5.5 million should be entered as 5,500,000)) 3. What is the face amount of the bonds? (Enter your answer in dollars, not millions. (l.e., $5.5 million should be entered as 5,500,000)) 4. What is the stated annual interest rate? 5. What is the market annual interest rate? 6. What is the total cash paid for interest assuming the bonds mature in 20 years? (Enter your answer in dollars, not millions. (l.e., $5.5 million should be entered as 5,500,000)) Answer is complete but not entirely correct. 1. The bonds were issued at A Discount 2. Issue price S 17.884,493 3. Face amount S 20,000,000 4. Stated annual interest rate 7% 5. Market annual interest rate 6. Total cash interest 7 96 S 58,000