Cron Corporation is planning to issue bonds with a face value of $700,000 and a coupon rate of 13 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year Cron uses the effective interest amortization method. Assume an annual market rate of interest of 12 percent (FV of si. PV of $1. EVA of Si, and PVA of $) (Use the appropriate factor(s) from the tables provided.) P10-9 Part 1 Required: 1. What was the issue price on January 1 of this year? (Round your final answers to nearest whole dollar amount.) Issue price Cron Corporation is planning to issue bonds with a face value of $700,000 and a coupon rate of 13 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year, Cron uses the effective-interest amortization method. Assume an annual market rate of interest of 12 percent. (EV01 Si P of $1. FVA 0.51, and PVA of $.1) (Use the appropriate factor(s) from the tables provided.) P10-9 Part 2 2. What amount of interest expense should be recorded on June 30 and December 31 of this year? (Round your final answers to nearest whole dollar amount.) June 30 December 31 Interest expense Cron Corporation is planning to issue bonds with a face value of $700,000 and a coupon rate of 13 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 1 of this year. Cron uses the effective interest amortization method. Assume an annual market rate of interest of 12 percent (FV of si. PV. of $1. EVA of $1, and PVA of $.1) (Use the appropriate factor(s) from the tables provided.) P10-9 Part 3 3. What amount of cash should be paid to investors June 30 and December 31 of this year? June 30 December 31 Cash paid Cron Corporation is planning to issue bonds with a face value of $700,000 and a coupon rate of 13 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year Cron uses the effective interest amortization method. Assume an annual market rate of interest of 12 percent (EV of $1. P of $1. EVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) P10-9 Part 4 4. What is the book value of the bonds on June 30 and December 31 of this year? (Round your final answers to nearest whole dollar amount.) June 30 December 31 Bonds payable Future Value of $1 1.03 5.ON 30 3.TS 1000 107000 1 2 t03000 106000 101750 1013 11677 105000 1.10250 166000 112050 1.19109 104000 108160 11246 11600 1.21665 102000 10400 106121 1000 1104 1125 122504 131000 4 101000 102010 101010 104060 1.05101 1.05152 107214 108216 10930 1.1002 2010 17 150073 10 TEST COICE 113300 118115 2135 1.2006 1324 19511 145 151621 12120 1.34010 10710 147746 141852 150253 1.535 16 17 1.3424 281 171819 . 10 15715 Future Value of 1 1. NO WE WOS 6.ON 7.04 SOS 171014 LIST L1233 LO 2.100 2.75219 1535 160103 1.64507 14057 VO 1190 201220 212233 2.26090 1.29361 11 15 16 19 2.57953 27900 2.9516 3.15 1727 1600 14225 151258 155797 160471 165285 170249 1.75355 180611 2.09378 2.42121 161378 16130 173709 10223 1981 10993 2012 208815 2.51017 201747 LO L1515 120011 122015 1200 135 180004 1.87200 154790 202582 2.10635 2.19112 2.6584 3.24340 1.7175 175007 136699 194633 2.02305 2.11529 220519 22051 283075 1970 2.07233 218267 2.29202 240662 2.5.2005 2.65330 3.365 412194 15 3.61553 2.54015 2.68277 285034 202560 320714 429187 5.74345 164051 13116 5.4210 751225 Future Value of $1 BON 11.0 13.0% 14.05 15.05 20.05 1.25000 TODO 116640 2 114000 12900 1.4154 120000 144000 172000 207300 GOSCI COME 1.05000 18010 129503 14115 1.5332 167710 182304 199256 2171 235735 5 10.05 1.10000 121000 1.33100 1.46410 161051 177156 1942 2.1959 235795 2.59374 11.0% 112000 125440 140493 157352 12234 19732 2.21060 2415 2.77301 3.1058 1.11000 1.23210 1.36753 151807 1685 187041 207616 2.30454 2.55804 1.13000 1.27690 1.44290 163047 34244 208195 235261 2.65844 3.00404 201457 1.15000 1.32250 15200 114901 201116 231706 2010 3.05902 351788 244141 30513 20140 29859 7 150 1.7132 18509 192541 2.1997 250227 2.85259 3.25195 2.0722 ME 54046 7.45058 9 006661 5.19978 5.19174 Future Value of 1 9.09 10.05 11.05 12.05 13.0 20.01 11 315136 383586 15.03 465279 5.35025 3.47855 3.89508 436349 11.64153 14.55192 2.85312 2130 145227 279750 417725 233164 2.5181 2.7192 2.9715 217217 10994 3.70002 1990 431510 14 25000 2826 10658 134172 26424 19791 61270 1712 5.1419 5.6041 1200 13.26760 16 422623 431790 5.40041 625135 7.13794 13725 927646 1057517 3.88328 431044 478459 571099 5.89509 6540355 7.25334 8.06211 13.50546 22.01230 5.05447 5.5592 6.11591 672750 1083471 17.44500 18 19 20 25 30 489801 5.53475 6.25421 706733 7.8600 9.02427 10.19742 11.52309 21.23054 331190 5.47357 6.13039 16004 7691 8.61276 3.64529 1700000 29.99 74308 891610 1069932 1283918 15.40702 140 22.10511 26.62333 314800 38 33760 953922 227.37831 7.07571 213705 9:35752 1076125 1237545 1423177 22.73737 20171 55.52714 440092 55 51115 314 8673517 2666700 307.79357 58414 1006265 1374343 26.45792 5095016 129130 5621172 Present Value of $1 Periods 1.05 20N 3.0 2.75 4.05 4.25% 7.0% 0.96154 0.37087 0.94260 0.91514 0.98039 0.95117 0.94232 092385 0.90573 088797 087056 0.96386 0.92902 089544 0.86907 0.80188 0.80181 0.77280 0.74490 0.71797 069202 036261 0834 0.81309 0.7994 0.76642 074409 3.09 0.95230 0.90703 0.16384 0.82270 0.73353 0.74622 0.71050 0.67684 0.64451 0.95923 092013 0.13252 0.84653 0.81212 0.71901 0.74725 0.71679 065757 0.65954 0.94340 0.25000 03392 0.79209 0.74726 0.70096 0 60900 0.85430 0.82193 0.79031 0.75992 0.73069 0.70259 0,67556 0.93458 087344 0.81630 0.76290 071299 056634 0.52275 058201 054390 050035 6 083676 0.82035 0.62741 0.59190 0.55809 - NOE 3.09 3.75 4.0N 5.0% 7.0 1 0.99010 2 0.98030 3 0.97059 4 09090 5 0.95147 0.94205 7 093272 8 0.92345 091234 10 Q.10520 Present Value of $1 Periods 1.ON 11 0.29832 12 0.88745 13 0.87856 14 0.86996 15 0.36135 16 0.85282 17 0.84038 18 0.83502 19 0.32774 0.81954 25 0.77977 0.74192 Present Value of $1 Periods 3.0 0.80426 0.78849 0.77303 0.7578 0.74301 0.72845 0.71416 0.70016 0.68543 0.67297 0.60953 0.55207 0.72242 0.70138 0.68095 0.66112 0.54155 0.62317 0.60502 0.58739 0.57029 055368 0.47761 0.41199 0.56701 0.64290 0.61966 059726 057568 055487 0.53451 051548 0.49685 0.47889 0.35838 0.33140 064950 052460 060057 0.57748 0.55526 053391 051307 0.49363 047464 0.45639 0.37512 030032 0.63265 0.60686 058212 055839 0.53562 051379 0.49284 0.47275 04534 0.43499 035326 028690 0580 55584 0.53032 050507 0.48102 0.45811 0.43530 041552 0.39573 037689 0.29530 0.23138 052579 0.49897 045854 0.44230 0.41727 0.39365 0.37136 0.35034 0.33051 0.31130 023300 0.17411 0:47509 0.44401 0.41495 0.38782 0.36245 0.33873 0.31657 0.29586 0.27651 0.25842 0.18425 013137 RXX 3.0% 10.03 11.0% 12.05 13.0% 14.0% 15.ON 25.05 1 0.92593 2 0.15734 0.79383 4 0.73503 5 0.68058 6 0.63017 7 058349 5 0.54027 050025 10 0.46315 Present Value of $1 Periods 09174 0.34168 0.77218 0.70843 05493 054627 054703 0.50187 0.46043 0.90909 0.82645 0.75131 0.68301 0.62092 056447 051316 0.46651 0.42410 0.90000 081162 0.73119 0.65873 0.59345 053464 0.48166 0.43393 039092 0.35218 0.89286 0.79719 0.71170 0.63552 0.5678 0 50663 0.45235 0.40388 36061 0.32197 0.87719 0.76947 0.67497 059200 0.51937 0.88496 0.78315 0.69305 0.61332 054276 0.48032 0.42506 0.37616 0.3320 0.29459 0.86957 075614 0.65752 0.57175 0.49718 0.43233 0.37594 0.3260 0.21426 0.24718 200 0.83333 0.65444 0.57870 0.48225 0.40189 0.33490 0.27900 0.23257 0.19381 0.16151 0.80000 064000 051200 0.40960 0.32768 0.26214 0.20972 0.15777 0.13422 0.10737 0.94 035056 0.00751 0.26974 9.0% 11.0 12.0 13.03 15.0N 20.0 25.05 12 13 14 15 16 17 042332 0.3911 035770 0.34016 0.315.24 0 2915 027022 0.25025 0.23171 021455 0.14602 0.0738 030753 0.35553 032618 02925 027454 0.25187 023101 02119 10.09 35049 0.31853 0.28946 0.26333 023309 0.21763 6.19784 011 0.16351 031728 0.28584 0.25751 0.23199 0,20900 0.18829 0.163 0.15282 0.13768 0.12400 007361 0.04368 0.28748 0.25668 0.22917 0.20462 0,18270 0.16312 0.14564 0.13004 0.11611 0.10347 0.05882 0.0038 0.26070 0.23071 0.20416 0.18000 0.15989 0.14150 0.12522 0.11081 0.09806 0.00670 0.00710 0.02557 023662 0.20756 0.18207 0.15971 0.14010 0.12289 010700 0.09456 00295 0.07276 003779 0.01963 021494 0.18891 0.16253 0.14133 012289 0.10685 0.09293 0.00081 007027 0.06110 0.03038 0.01510 0.13459 0.11216 0096 0.07739 0.06491 0.05409 004502 0.00196 0.00130 0.00003 001048 006872 005458 0009 Q02518 002815 Q07252 001501 001441 0.01153 0.00378 0.00124 19 20 25 30 0.1784) 0.11597 0.07537 0.09230 0.05731 Future Value of Annuity of $1 Perlede 1.09 2.0 3.ON 3.75 4.0N 4.25% 50% 7.05 1.00000 2.01000 303010 406040 5.10101 6.15.202 7.21354 2 3 4 5 6 7 3 9 100000 202000 306040 412161 5.2004 6.2012 743420 100000 20.000 3000 4 18363 5.30914 100000 203750 111191 4 2000 5.38933 6.5914 7.83861 913255 10 47503 1185784 100000 2.04000 312160 424646 5.41632 663299 7.89829 921423 1058780 12.00611 100000 2.04250 2.12931 4.2230 5.44345 6.6740 7.95848 9.29571 1069132 12.14622 100000 205000 115250 41013 5.52563 6.80191 8.14201 9.54911 11.02656 12.57789 1.00000 2.00000 318060 437462 5.63709 6.97522 3.79314 9.19747 11 49112 13.18079 1.00000 2.07000 321450 4.41994 5.75014 7.15229 165402 1029980 11 97799 17.81645 766246 3.89234 10.15911 11.46388 75463 1094972 10.46221 Future Value of Annuity of $1 Period 1.0 4.0 4.25% 50% 8.0% 7.05 122 130833 140 16.09600 EDD&R 2.05 12.16872 13.41209 14 SEOU 15.97394 17.29342 161929 20.01207 21 41231 22 4056 2429737 32 03030 4056800 3.75 13.31288 14.81212 16.35757 1798135 19.65565 21.39274 23.19497 25.06478 27.00471 29.01739 40.22112 53.79924 12.30780 14.19203 15.61779 17.08632 18.59991 20.15688 21.76199 23.41444 25.11687 26.87037 36.45926 47,57542 18.20 18 79.6147 20:3100 20 2201900 202020 30 30 Future Value of Annuity of $1 13.48635 15.02581 16.62684 18.29191 20.02359 21.82453 23.60751 25.64541 2767123 29.77900 41.64501 56.08494 1356244 15.24309 56.89092 18.60879 20.39966 22.26665 24.21290 26.24203 28.35732 30.56250 43.07648 58.48553 14 20679 15.91713 17.71298 19.99863 2157856 23.65749 25.84037 28.13238 30 53900 30.06595 47.72710 66.43385 14.97164 16,86994 18.88214 2101507 27.27597 25.67253 28. 21268 30.90565 33.75999 36.78559 54.86451 79.05819 15.78360 17.86845 2014064 22.55040 25.12902 27.88805 30 84022 32.99003 37.37896 40.99549 53.24904 9446079 3.0 100% 11.0% 12.0% 13.0% 14.05 15.0% 20.05 25.ON 1 2 3 4 100000 208000 3.74540 450611 5.36550 733553 19272 1063663 12.4756 100000 2.09000 327810 4.57313 598471 7.52330 9.2004 11.02847 12.02104 15.19293 1.00000 210000 331000 464100 610510 771561 9.48717 11.43509 13.5790 1593742 1.00000 2.11000 3.34210 4.70973 6.22780 7.91286 9.78327 118590 14.16291 16.72200 100000 212000 337440 4.77933 6.35285 8.11519 10.08901 12.29969 1477566 17.56874 1.00000 213000 3.40690 484980 648027 8.32271 10.60466 12.75726 15.41571 18.41975 1.00000 2.14000 343960 4.92114 6,61010 8.53552 10.73049 1323276 16,08535 19.33730 1.00000 2.15000 3.47250 4.99337 6.74238 8.75374 11.06680 13.72682 16.78584 20.30372 1.00000 2.20000 364000 5.36800 744560 997992 129150 16.49900 20.79890 25.95868 1.00000 2.25000 3.81250 5.76563 8.20703 11.25879 15.07349 19.84186 25.80232 33.25290 Future Value of Annuity of 51 Per 1.0 3.0 100N 11.09 12.09 13.05 16.0N 15.03 20.0% 25.0N 2 to 14 15 16.64549 197713 21.49530 242142 27.15211 30 32420 23.75023 37.45024 41 44526 45.76196 73.10594 113.28321 1750029 2014072 2295330 26.01919 29.16092 33.00340 2697370 4130134 46.01846 51.16012 14.10090 136 30754 18.53117 21.38428 2452271 27.97498 2177243 594973 405410 6559917 51.100 57.27500 98 34706 164.49402 19.56143 2271319 26.21564 30.09492 34.40510 39.1895 44.50054 50.34 56.93149 5420230 11441331 195.000 2065458 24.13313 20.02911 32 39260 37.27971 42.75320 4838167 55.74971 640968 7205244 133 13187 24133868 2131432 25.65018 29.98470 3481271 40.41746 46.61123 53.73906 61.72514 70.74941 80.94683 15551956 293 19922 23 04452 27 27075 32 09865 3758107 4384241 50 98035 59.11760 68 19407 7896923 9102493 181.87083 356.70505 24.34928 29.00167 34.35192 40 50471 47.58041 55.71747 6507509 75,83636 8821181 10244358 21279302 434.74515 22.15042 39 58050 48 49660 59 19592 72.03511 37.4421 105 93056 128.11 154.74000 186 68800 471.98108 1181.88157 12 56503 54 20766 15950 86.94947 109.68684 13810855 17363563 218.04460 273 55576 34291470 105479118 3227. 17422 19 20 25 30