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Business, 11.11.2019 21:31 parosil

Sun city issues $52 million of bonds on january 1, 2018 that pay interest semiannually on june 30 and december 31. portions of the bond amortization schedule appear below:

date cash
paid interest
expense decrease in
carrying value carrying
value
1/1/2018 $ 65,053,443
6/30/2018 1,820,000 1,626,336 193,664 64,859,779
12/31/2018 1,820,000 1,621,494 198,506 64,661,273
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 stated annual interest rate? (hint: be sure to provide the annual rate rather than the six month rate.)

5. what is the market annual interest rate? (hint: be sure to provide the annual rate rather than the six month rate.)

6. what is the total cash paid for interest assuming the bonds mature in 20 years?

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Answers: 3

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Sun city issues $52 million of bonds on january 1, 2018 that pay interest semiannually on june 30 an...
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