Given the information below, which bond(s) will be issued at a discount? Stated Rate of Return Market Rate of Return Bond 1 7% 5% Bond 2 8% 8% Bond 3 12% 14% Bond 4 9% 11% Bond 3. Bond 4. Bonds 3 and 4 Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity Interest Expense Increase in value Carrying Value Cash Paid Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 $10,400 10,400 10,400 10,400 10,400 10,400 $12,340 12,437 12,539 12,646 12,758 12,877 $1,940 2,037 2,139 2,246 2,358 2,477 Carrying Value $ 246,893 248,743 250,780 252,919 255,165 257,523 260,000 THA issued the bonds for: Multiple Choice O $260.000 o $246.803. O $322.400 O Cannot be determined from the given Information The Viper retires a $50.7 million bond issue when the carrying value of the bonds is $53.5 million, but the market value of the bonds is $47.9 million. The entry to record the retirement will include: Multiple Choice 0 A credit of $5.6 million to a galn account. 0 A credit to cash for $53.5 million. 0 A debit of $5.6 million to a loss account. O No gain or loss on retirement. Discount-Mart issues $15 million in bonds on January 1, 2021. The bonds have a nine-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Cash Paid Interest Expense Increase in Carrying Value Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 $750,000 750,000 750,000 750,000 $802,552 805,705 809,047 $ 52,552 55,705 59,047 62,590 Carrying Value $13,375,859 13,428,411 13,484,116 13,543,163 13,605,753 What is the interest expense on the bonds in 2021? Multiple Choice O $1.500.000 $802.552 O O $1.608.257 O O $805705 X2 issued callable bonds on January 1, 2021. The bonds pay interest annually on December 31 each year. X2's accountant has projected the following amortization schedule from issuance until maturity: Decrease in Carrying Value Interest Expense Cash Paid Date 01/01/2021 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 $8,320 8,320 $7,578 7,527 7,471 7,412 7,348 8,320 8,320 Carrying Value $ 108,264 107,522 106,729 105,880 104,972 104,000 $ 742 793 849 908 972 8,320 What is the annual market interest rate on the bonds? Multiple Choice 0 0 0 0 Discount-Mart issues $16 million in bonds on January 1, 2021. The bonds have a seven-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Cash Paid Interest Expense Increase in Carrying Value Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 $640,000 640,000 640,000 640,000 $720,811 724,851 729,094 733,549 $ 80, 811 84,851 89,094 93,549 Carrying Value $14,416, 217 14,497,028 14,581, 879 14,670,973 14,764, 522 What is the market annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your Intermediate calculations.) Multiple Choice Oo oo
