Question: Temptation Vacations issues bonds on January 1, 2012, that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear

Temptation Vacations issues bonds on January 1, 2012, that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below:

Required:
1. Were the bonds issued at face amount, a discount, or a premium?
2. What is the original issue price of the bonds?
3. What is the face amount of the bonds?
4. What is the term to maturity in years?
5. What is the stated annual interest rate?
6. What is the market annual interest rate?
7. What is the total cash interest paid over the term to maturity?

Cash Paid for Interest Carrying Value Interest Decrease in Carrying Value Date 1/1/2012 6/30/2012 12/31/2012 $55,338,768 55,275,625 55,210,272 2,000,000 $1,936,857 2,000,000 $ 63,143 1,934,647 65,353 6/30/2031 12/31/2031 2,000,000 2,000,000 1,766,622 1,758,454 233,378 241,546 50,474,924 50,241,546 50,000,000

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