Question: On June 30, 2021, Singleton Computers issued 6% stated rate bonds with the face amount of $200 million. The bonds mature on June 30, 2036

On June 30, 2021, Singleton Computers issued 6% stated rate bonds with the face amount of $200 million. The bonds mature on June 30, 2036 (15 years). The market rate interest for similar bond issues was 5% (2.5% semi-annual rate). Interest is paid semi-annually (3%) on June 30 and December 31, beginning on December 31, 2021.

Required:

1. Determine the price of the bonds on June 30, 2021.

2. Calculate the interest Expense Singleton reports in 2021 for these bonds.

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