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Ashanti Kingdom Inc. (AKI) issued a 10-year, 5% bond with a face value of $1,000,000 on January 1, 2020. Interest is paid annually on December
Ashanti Kingdom Inc. (AKI) issued a 10-year, 5% bond with a face value of $1,000,000 on January 1, 2020. Interest is paid annually on December 31. The market rate of interest on that date is 4%. Please respond to the following questions. Note: Use the present value tables on CouseSite (Days 21 and 22 folder) to perform calculations as needed. Round all present value interest factors to 4 decimal places. Round all $ numbers to the nearest whole number. The interest cash flows is Choose... The principal cash flow is Choose... What type of cash flow is the interest cash flows? Choose... What type of cash flow is the principal cash flow? Choose... How much is the present value of the interest cash flows? Choose... How much is the present value of the principal cash flow? Choose... How much is the selling price of the bond? Choose... Is this bond selling at a discount or premium at the date of issuance? Please determine the amount of discount or premium Choose... How much is interest expense for the year 2020? Choose... How much is interest expense for the year 2027? Choose... How much is bond discount or premium amortized for the year 2021? Choose... How much is bond discount or premium
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