On January 1, 2021, Vacation Destinations issues $20 million of bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below:

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).)

Issue Price: ___

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).)

Face Amount: ___

4. What is the stated annual interest rate?

5. What is the market annual interest rate? (Round your answer to the nearest whole percent.)

6. What is the total cash paid for interest assuming the bonds mature in 10 years? (Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000).)

(1) (2) Cash Paid (3) Interest (5) Carrying (4) Increase in Carrying Value Date for Interest Expense 1/1/2021 6/30/2021 12/31/2021 $600,000 600,000 $650,257 652,016 Value $18,578,760 18,629, 017 1 8,681,033 $50,257 5 2,016