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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 the
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 Expense Increase in Carrying Value Date Cash Paid 01/01/2021 06/30/2021 $600,000 12/31/2021 600,000 Carrying Value $17,864,493 17,889,750 17,915,891 $625,257 626,141 $25,257 26,141 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, not millions. (i.e., $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. (i.e., $5.5 million should be entered as 5,500,000)) 1. Were the bonds issued? 2. Issue price 3 Face amount % 4 Stated annual interest rate 5 Market annual interest rate 6. Total cash interest %
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