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Astro World issues $20 million in bonds on January 1, 2021 that pay interest semi-annually on June 30 and December 31. A Portion of
Astro World issues $20 million in bonds on January 1, 2021 that pay interest semi-annually on June 30 and December 31. A Portion of the bond amortization schedule appears below: Interest Increase in Carrying Carrying Date 01/01/2021 06/30/2021 $600,000 Cash Paid Expense Value Value $17,864,493 12/31/2021 600,000 $625,257 626,141 $25,257 17,889,750 26,141 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. (i.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, tot millions. (ie., $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. (... $5.5 million should be entered as 5,500,000))
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