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On June 30, 2021, Singleton Computers issued 6% stated rate bonds with a face amount of $200 million. The bonds mature on June 30,
On June 30, 2021, Singleton Computers issued 6% stated rate bonds with a face amount of $200 million. The bonds mature on June 30, 2036 (15 years). The market rate of interest for similar bond issues was 5% (2.5% semiannual rate). Interest is paid semiannually (3%) on June 30 and December 31, beginning on December 31, 2021. (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds on June 30, 2021 2. Calculate the interest expense Singleton reports in 2021 for these bonds using the effective interest method. Required 1 Required 2 Calculate the interest expense Singleton reports in 2021 for these bonds using the effective interest method. answers in whole dollars. Round your final answers to nearest whole dollar amount.) Period-End Cash Interest Paid Bond Interest Expense Premium Amortization Carrying Value 06/30/2021 200,000,000 12/31/2021 125,581,740 $ 95,348,000 $ 30,233,740 169,766,260
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