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On January 1, 2021, Vacation Destinations issues $26 million in bonds that pay interest semi-annually on June 30 and December 31.Below are parts of the

On January 1, 2021, Vacation Destinations issues $26 million in bonds that pay interest semi-annually on June 30 and December 31. Below are parts of the bond amortization schedule:



(1)

(2)

(3)
(4)
(5)



paid in cash
Interest
It increased in
That carries

Date
out of interest
Bills
Value in books
Valor

1/1/2021














ps24.152.388

30/06/2021

ps780.000

ps845,334

ps65,334



24,217,722

31/12/2021


780.000


847,620


67,620



24,285,342


Required:
1.
 Were the bonds issued at face value, at a discount, or at a premium?

2. What is the original issue price of the bonds? 

3. What is the face value of the bonds? 

4. What is the established annual interest rate?

5. What is the market annual interest rate?

6. What is the total cash paid in interest assuming the bonds mature in 10 years?

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