Pool Corporation, Inc., is the world's largest wholesale distributor of swimming pool supplies and equipment. It is a publicly traded corporation that trades on the NASDAQ exchange. The majority of Pool's customers are small, family-owned businesses. Assume that Pool issued bonds with a face value of $930,000,000 on January 1 of this year and that the coupon rate is 5 percent. At the time of the borrowing, the annual market rate of interest was 4 percent. The debt matures in 10 years, and Pool makes interest payments semiannually on June 30 and December 31. (FV of $1. PV of $1. FVA of $1, and PVA of $1 (Use the appropriate factor(s) from the tables provided. Round intermediate calculations and final answers to whole dollars.) Required: 1. What was the issue price on January 1 of this year? Issue price 2. What amount of interest expense should be recorded on June 30 and December 31 of this year? June 30 December 31 Interest expense 3. What amount of cash interest should be paid on June 30 and December 31 of this year? he 1154150 CB 245221 251 2.7190 2937 212 30345 14 3104 150 1 55495 SOT HE ca 5.15 513000 197033 40 LES 17 S0140 3.70000 290000 4.31570 54 007 1050 5.14104 044 6115 12 1237545 1 36124 DIE 12 2013 1310 22 10062 145 29 esent Value of $1 1.0 3.09 3.75 3.04 5.0 7.09 0.95923 0.02013 OSO 0.90099 0.96117 0.94232 0.92385 090573 0.88797 0.87056 0.95238 0.90703 0.86331 1 092010 2 0.98030 3 0.97059 09038 0.95147 0.94205 093272 0.92343 9 091434 10 0.90529 Present Value of $1 Periode 1.03 097007 0.94260 091514 0.08349 0.36261 0.33743 0.81309 078941 076642 074409 0.96395 0.92102 0.19544 0.85307 0.03188 030181 0.77283 0.74190 0.71797 0.69202 0.96154 0.92456 0.88900 09540 0.82193 0.79031 0.75992 0.73069 0.70259 067556 079200 0.76726 084553 0.81212 0.77901 0.74725 071679 0.68757 0.65954 0.78353 0.74622 0.7106 0.67684 06451 061391 0.93458 0.37344 0.11630 0.16290 071299 0.56634 067275 OS2201 05093 OSOS 083676 0.82035 062741 059190 3.0% 3.75% 4.09 4.23 SON SON 0.5257 058068 0.55684 053032 0.67509 401 005884 044230 0.80426 0.78849 0.77303 0.75788 0.7301 0.72845 0.71416 0.70016 0.68543 0.67297 0.60953 0.55207 0.54958 0.62450 050057 0.57748 0.55526 0.53391 0.51337 LOSOS COLD 0.72242 0.70134 0.58095 056112 0.54188 0.62317 0.60502 0.56739 057029 0553 0.47761 0.41199 061255 0.50606 058212 OS 0.53562 051379 0.49284 0.47275 0.3272 0.66701 0.64290 0.61966 0 59726 057563 0.55487 055481 0.51568 0.49655 0.47189 0.00832 0.33140 11871 0.011 0630 041552 39573 0.37589 0.23355 0.3716 35034 031051 0:3110 627651 047464 0.49619 0:31512 030332 063499 0.3503 02869 0.13435 0.23130 11 089632 12 0.88745 0.87866 16 0.86996 15 0.85135 16 0.85282 17 0.8408 18 0.83602 0.32774 20 0.81954 25 0.77977 30 0.14192 Present Value of $1 Parede 3.0 1 092993 2 0.35734 3 0.79300 0.73503 5 0.58050 5 0.63017 7 OS0349 3 0.54027 9 050023 10 0.46510 Present Value of $1 0.0% TOON 11.0 13.09 SO 15.0 0-90090 0.81163 073119 0673 08771 2.0 0.67497 0.1095 0.75614 027333 0644 0.30000 05000 051200 09174 0.34166 0.77210 0.750 0.54991 059622 0.56700 0.50187 0.4600 0.42241 0.00 0.82645 0.75131 068301 0.02092 05641 0-51316 0.46651 0.42410 057175 0.236 0.79719 0.21178 0.63552 OUTO 050 0.05235 0.003 0.15051 022191 0.3390 0.70315 0.00305 0.61332 050274 0.10032 0.4250 0.37616 0.51937 03270 053454 0.68165 0.43393 0.2006 0.350 0.30751 0.375 32000 0.2005 0.27900 021257 1930 0.16151 0.9521 029459 10.04 12.09 12 1) 14 15 0.4288 9713 36770 034046 011524 0.38753 153 012618 029925 0.26070 0 23071 020416 10000 11 0314 0.0001 016 0.73052 020756 16207 0.15971 0.14010 0.01060 0.2006 026333 07393 021763 0.19784 017900 016351 LOD 11.09 0.31720 020584 25751 0.23199 020000 0. 0.163 0.15282 0131 0.12400 007 004) 0.14150 0.12522 0.2016 0250 0.22517 02002 018270 16112 16554 13004 0.11611 0.10357 OLE 0.00338 0.100 027001 0715 0.22171 00500 0.25167 0.22107 621199 0.19449 0.17 0.51592 LES 0.00 0944 0295 008755 20 25 30 0.00 0.0008 000710 0.14602 0.003 001 0.0001 017032 0110 0.00 001510 0.09230 005131 00 to tour 00001 3.05 0.0% 7.ON 100000 203000 10000 100000 202000 206040 412561 520004 6.2012 100000 2.05750 21170 100000 204000 21250 20646 100000 20050 212931 24230 5.604 6.67430 100000 2 201000 303010 406040 5 5 10101 6.15202 7 7.21354 3 8.28567 9 9.3650 10 1045221 Future Value of Annuity of $1 Perlede 1.0% 9 S13 6.59100 10914 6.46341 766268 19234 10.15911 11.46388 100000 205000 155250 31013 5.52553 5.00951 14201 3.5011 11.07656 12.57720 100000 200.000 2160 43752 5.63709 6.97532 9384 9.89747 11.49132 1313079 L00000 207000 321490 94 5.75074 7.15320 8.65402 10.25980 11 97799 1201645 29 9212 29571 15827 2.75463 10:14972 10.07503 116784 . 1.75 BOX 6.09 7.045 14.20679 15 91713 11 1156683 12 12.68250 133033 14 1456762 15 1609690 16 17.25786 17 TL 43044 19-61475 15 20:31090 20 22.01900 25 28.24320 30 3414 Future Value of Annuity of $1 Periode SON 152430 16 089 2016 12.16872 13 41200 14.68023 15.97394 17.29342 18 62929 20.01207 21.41231 2254056 2429737 12.03030 056800 1280700 1419200 15.61770 1706622 1850091 20.15680 21.7515 2141644 25.11689 26.87037 36.455 4757542 13.31260 141212 16.36757 1796135 19 65565 21.9274 23.19091 129191 20.0235 2153 2265 1457164 16.86 18088214 2101507 23 22597 2567253 28 21288 2090565 33.75999 36.79555 5486451 7919 19 9853 21 5756 216510 2534007 2133 30 5700 310035 72710 66.4335 24212 15.78360 17.45 2014064 22.55049 25.12902 22. SOS 30 30027 33.99900 373789 09549 53 2004 14.45079 2700473 29.013 4027112 2767123 2770 3056250 014 10.03 11.09 25.0 100000 2.13000 100000 212000 2490 100000 200000 2.27810 ST 5.58471 7.52.313 9.2000 110200 1102104 15.19293 100000 211000 34210 70073 0.22780 791206 1 1.00000 2 2.00000 3 3.40 450611 5.36660 7.33593 62210 . 106.306 12.476 10 16 Future Value of Annuity of 51 Perde 3.0 100000 210000 331000 654100 610510 71561 9:47 11415 +35790 15.90 1.00000 2.25000 21250 10000 2.15000 107250 99301 103 100000 2.12000 760 477921 635205 111519 1000000 1229068 1477556 17540 1.00000 220000 164000 535800 7.44160 661010 12271 10.73049 320275 16.05 120703 TE2879 15.07349 194195 LES 12.1990 16.900 20.79050 25.5854 16 20302 1672201 33.25290 . 11. 11.08 TEX 30.09 11 21045 27.77075 11.53117 21.33620 245271 2797 3177241 3443 22.00167 13 TS 560 2270019 2621144 3092 30.05.10 OPER 99.COTT 15 17 21.49530 2421492 21.15211 201201 3175023 17.45024 41 4426 4575190 37 SOT 17.56020 2014072 2295330 26079 2935093 11 00140 3697370 4170134 4601546 51.16012 14.70000 20.02911 22222 3727973 3050 49000 55.1993 72 01511 IPOD TT STOSOS 55. CH 15 20 75.0636 405440 55917 5115308 5727500 034700 1940 2004 5639 2003 11411331 19.1.2018 10393054 12171667 5478000 SEO 40 104 10 171356 2100 272 55570 30 105411 2227,127 911 or 21279302 USCIRE 100157 Af51 3.0 7. 1 2 3 . 1340 2.500 194154 100 1220 2 09123 17 2010 LLORE 277500 371710 267301 306511 42123 09 1002 262432 3.3721 10020 75654 GESTS 4530 S795 672019 7.65150 56602 9010 Present Value of any of 5 Per 1.0 5601 60 7.32540 15324 5.2014 5.000 02 1.151 272335 3.559 4124 507509 5.78637 6.4321 7.10782 7.72173 LOT 519914 59 665370 5 20500 6.05790 2020 7.52011 32121 701300 7.78511 550230 620979 14 350 597130 551923 7.023 7.3000 2.05 2.0 3.78 7.09 LOSRES 10634 95229 1014236 1979 1131530 17012 115374 CONSO 11 103753 978605 12 1225500 10.57534 ta 1131832 13.000 12.90625 15 13.050 12.34926 16 107172 357771 17 15 5225 1421 10 167027 203 19 15.6754 20 16351 22.02315 19.5230 30 2580771 22 Present of Army of 51 Paris 10641 36275 9.39357 4 10:36 02172 101 116 1206512 11 7.687 38334 35250 9.2010 971225 90.9050 16721 102750 115612 1192 7.94299 335755 276547 10791 94665 75122 12 12924 1213 753 161200 14770 1741315 196000 10 150 177902 SALIESE 1168 12/0004 12. 15.09 011 0.000 1 2 2 4 5 09253 1763 2.57710 06005 16GB 240 LES 24 21 273019 tos 2.400 10335 1600 SO 23115 21 0.80000 4000 1.55200 399271 16 20T 151723 223323 25 215216 1 4402 2106 2583 2006 333553 3504 2 2692 29510 116114 503295 . 5164 9 10 671000 5:41 Pranty of 5 456 4 $1200 471220 51 55370 5. 5.75900 LE SU S004 CINES SETT 03031 41920 25700 16 11 OS 12 7.5 co 6168 7.100 1 OTI ZALO 1165 555755 5231 500 2003 5.8422 GORE 1900 461051 16 15 56 13 10 10 20 7600 722111 125131 312164 EST 250 1556 20141 60 7 2002 192714 10 ON WE 100 TE 30 SENCO CE 70704 361 23 4055 40 395508
