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County Bank has $600,000 of 5% debenture bonds outstanding. The bonds were issued at 101 in 2018 and mature in 2038 The bonds have annual

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County Bank has $600,000 of 5% debenture bonds outstanding. The bonds were issued at 101 in 2018 and mature in 2038 The bonds have annual interest payments. Read the requirements Requirement 1. How much cash did County Bank receive when it issued these bonds? County Bank received $ at bond issuance Requirement 2. How much cash in total will County Bank pay the bondholders through the maturity date of the bonds? County Bank will pay the bondholders $ through the maturity date of the bonds. Requirement 3. Calculate the difference between your answers to requirements 1 and 2. This difference represents County Bank's total interest expense over the life of the bonds. The difference between your answers to requirements 1 and 2 is $ Requirement 4. Compute County Bank's annual interest expense using the straight-line amortization method. Multiply this amount by 20. Your 20-year total should be the same as your answer to requirement 3 County Bank's annual interest expense using the straight-line amortization method is $ Multiply the annual interest expense by 20. The 20-year straight-line interest total is $ Is your 20-year total the same as your answer to requirement 3? 327 Enter any number in the edit fields and then continue to the next question Requirement 1. How much cash did County Bank receive when it issued these bonds? County Bank received $ at bond issuance Requirement 2. How much cash in total will County Bank pay the bondholders through the maturity date of the bonds? County Bank wi A Requirements Requirement 3. Hank's total inte sents County he difference Cequirement 4 mount by 20. Y Multiply this 1. How much cash did County Bank receive when it issued these bonds? 2. How much cash in total will County Bank pay the bondholders through the maturity date of the bonds? 3. Calculate the difference between your answers to requirements 1 and 2. This difference represents County Bank's total interest expense over the life of the bonds 4. Compute County Bank's annual interest expense using the straight-line amortization method. Multiply this amount by 20. Your 20-year total should be the same as your answer to requirement 3. County Bank's Multiply the anng the 20-year stre your 20-year Print Done ter any number in the edit fields and then continue to the next

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