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 $750,000,000 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? 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? June 30 December 31 Cash paid 4. What is the book value of the bonds on June 30 and December 31 of this year? June 30 December 31 Bonds payable Wture Value of $1 2.0 3.05 3.75 4.0% SOS 105000 10000 101000 10600 109273 1.12551 1902 1.19405 1.02000 104040 100121 100243 11000 1.12615 1.14869 117166 1.19509 12100 104250 11 1.13000 118115 123135 119102 2020 1 101000 2 102010 2 103030 4 100000 5 105101 5 105152 7 107214 108286 5 109365 10 1.10462 Future Value of $ Peria 1.0 100 108150 112438 LIOS 1.21665 126522 131590 103750 107641 111677 115005 120210 124718 129095 13447 39281 1.44504 LES 107000 114030 27594 1300 140255 500 11570 121551 127528 134010 140710 147740 155113 50350 126677 130477 130 133024 139511 145.600 151621 142303 148024 100 15675 2.0 3. 3.755 CON SON . 7. 1.11567 15306 CASE 142570 10 12 1 14 15 16 17 10 1.34237 125824 1.29361 13194 155545 161378 167430 1.73709 110223 171034 1795 8565 192993 20701 17173 1.791 201220 213293 225090 151259 2.50435 22527 2. 257353 27500 LIS 11494 116017 1.1725 LO 1. 19615 120811 122019 12820 34785 DEL 1575 160103 186507 73158 130014 187290 14790 202582 2.100 219112 206554 1.37279 140024 1.42825 1456 1458 166051 1811) 152992 1.60471 165205 17000 1.75351 110611 200370 242225 194633 2.02905 211522 220519 1583 10 2.500 259277 250 10250 2014 20 25 30 2.29200 240662 252 265330 3:36 432194 ESSE NE 208815 2.51017 30170 2,33075 2.4 DS 76772 Future Value of 5 100 11.0 12.09 8.09 109000 1 2 3 00055 1.166 1.10000 121000 33100 112000 12540 113000 2100 000 10 120000 129503 600 4 163007 3000 4933 15867 1536 167710 2100 2013 157352 17234 111000 128210 13516 151897 16508 87041 207016 230454 2.55804 2190 520 11001 2011 151051 177136 94 2.143 105 2009 2.1 22100 2.66000 060581 06653 2.520 2.17 255844 200404 10 2.150 2.77300 3.3055 5.15 251750 4066 7.60 Future Value of $1 2.0 ON 215012 11 12 1 2.13164 251817 2.7190 155170 1445 > 1154 2.500 281266 300 33073 LEESHE ESSE 310 55105 3345 011 5.15 1300 10 16 17 152 7.007511 MUSET HIZ 197033 417725 4554 5.080 12 34 3.70003 2.990 431570 LES WEE TAS 54 LOTTE DO 7171 5.14104 044 10570 6115 LICET DIE 101 115 2203 17.5000 10.23471 1746 11.2670 11 2013050 15 22 2011 esent Value of $1 NOT 3.09 3.755 4.09 4.75 3.0% 3.0 7.09 0.93458 0.98039 096117 0.94232 0.92385 090573 0.88797 0.87056 021630 097017 0.94260 091514 088849 0.36261 033740 0.31309 078941 676642 074409 0.96385 0.92302 029544 0.85307 0.37188 080181 0.77281 0.74690 0.71797 069202 0.96154 0.92456 0.88900 095480 0.82193 0.7901 0.75992 0.73058 0.70259 0.67556 0.95923 0.02013 053252 084853 0.31212 0.77101 0.74725 071679 0.68757 0.65054 0.95238 0.90700 0.86334 0.22270 0.78353 0.74622 0.7108 0.67684 0:54461 0.61391 000 0.25000 0.00M2 0.79209 0.74725 670436 DOG 0.62761 0.59190 0.58 071299 0.56634 082275 033576 0.82035 0509 SOROS 3.0% 3.75% 4.0% CON 1 0.92010 2 0.98030 2 0.9705 05093 09514 0.94205 0.93272 0.92348 0.91434 10 0.90529 Present Value of $1 Periods 1.ON 11 089632 12 0.88745 0.87866 16 0.86996 15 0.35135 16 0.85282 17 0.84038 18 0.83602 19 0.82774 20 0,81954 25 0.77977 30 0.74192 Present Value of $1 Parede 3.09 0.58068 0.55684 053012 0.67509 1401 0.5257 0.49497 005384 04623 0.80426 0.78849 0.77303 0.75788 0.74301 0.72845 0.71416 0.70015 068543 067297 0.60953 0.55207 0.72242 0.70138 0.58095 0.56112 0.64186 0.62317 0.60502 0.58739 057029 05536 0.47761 0.41199 0.66701 0.64290 0.61966 59726 057563 0.55487 05341 0.5156 0.49685 0.4709 0.7932 0.33140 0.54958 0.62450 0.50057 0.57740 0.55526 053391 0.51331 0.43363 0.47464 0.45639 031512 030832 0.67255 060606 058212 05589 0.53562 051379 049284 047275 0453 0.63499 0.350 02869 LOSOS COLO BISPO 0.79355 000630 041552 39573 0.37589 029500 0.23132 035034 31051 0.31180 627651 02580 0.13435 0.17411 0.0 TOON 11.0 13.0 1 15.OS 0.1957 0.75614 0.000 0.64 0.00000 054000 051200 091740 0.14160 0.77218 0.7050 0.54999 0.19627 0.54703 0.50187 0.4600 0.42243 1 0.92590 2 0.35734 0.79330 0.73503 5 0.68054 5 0.63017 7 OSE349 3 0.54027 50025 10 0.46319 Present Value of $1 Period 0.1093 0.87645 0.75131 063301 0.02092 056147 0.51316 0.4665 0.43410 038554 057175 12.09 0.9235 0.79719 071178 063552 09670 0506 0.05205 0.00 0.15051 0.32197 090090 011162 073119 DSETS 00345 0.53464 0.6816 0.43093 0.39092 0.95210 0877 2.763 0.67497 0.59200 0.51931 0.33 0.73015 0.0305 0.61332 054274 018030 0.42500 037614 3210 OCTO 0.70964 03505 030751 0.3000 0.375 32000 0.2425 2018 021257 16777 0191 0259 016151 11.09 12.05 13 ROSE LCD 031720 020584 0.53450 12 11 14 36770 034046 0.21053 020756 0.1007 02144 0.100 016 0219 9.30000 16 17 0.38753 1553 012610 029925 027454 025167 0.22107 621199 0.1944 1 0.11592 0075 0.2910 027001 0 250 0.2011 316 0204 076333 07393 021763 0.1978 017300 016351 016 0.09230 0051 0.2016 020 0.22517 0.2002 016270 16112 016554 13004 0.11611 0.1007 0.25070 0.23071 0.20416 18058 0.1509 0.14150 0.12522 0.1103 0.00 007 000710 0.051 005400 0.163 0.70 2800 10000 COD 00376 20 0.117 0.12400 01295 2012 003 0110 14 001 0.14602 0.00 DC DO to toat 004168 0.0033 0.01510 3.0 5.09 . 7.09 1.00000 207000 103000 100000 203750 21121 42300 100000 205000 100000 204000 21250 420646 541632 100000 203000 206040 412561 520004 6.20012 7430 5127 75463 10:14972 1.00000 2 201000 307010 406040 5 5 10101 6.15202 7 721054 3 8.28557 9 936850 10 10.46221 Future Value of Annuity of $1 Periods 9 100000 2.0050 212931 21250 5.404 667 10914 6.45841 756268 6.5910 31013 5.5256) 5.00951 14201 100000 200.000 2100 4.3752 5.63709 6.57532 9384 9.89747 11.49132 1218079 100000 207000 32100 094 5.75074 7.15320 365402 10.25980 11.97799 1201645 7829 9212 105820 92357 10.15911 11.46388 10.07503 15784 1102656 12.57700 BOX 6.09 1 1156683 12 1268250 1330033 14 1450742 15 1609690 17.25786 17 TL 43044 1 1961475 19 20.31090 20 22.01900 25 21.24320 30 34714 Future Value of Annuity of $1 Period 12.16872 13 41200 1458033 15.97394 17.29342 1851929 20.01207 21.41231 22.34056 24.29737 1203030 1056800 12.30700 1419200 15.61779 17.06622 18.50091 20.15688 21.7515 13.31250 141212 16.36757 1758135 1965565 21.39270 23.19497 45 15.02 1 1329191 20.0235 20 22.00751 28.64541 2757123 20.770 4134591 1165344 15.20 16 TES 209966 2220 24 21290 14.20679 15 91713 1271298 19. 9863 21 5756 22.6570 2534037 2013238 3057300 23.0595 472710 16.4383 197164 168594 188214 2101507 23.27597 2567253 28.21288 3090565 33.75990 76.79555 54.36451 795819 7.0% 15.78300 1745 2014064 22 55049 25.12903 27. SOS 30 30022 33.99900 373789 10.99549 63.20304 46079 25.11680 26.87037 36.4552 4757542 2700471 29.01 4027112 20357 3056210 We 9.0% 14.00 2005 25.08 1 2 3 4 1.00000 2.00000 124540 100000 200000 227810 100000 2.12000 100000 213000 100000 100000 211000 234210 10173 22780 7.91206 1.00000 2.25000 21250 1.00000 2 20000 1.64000 S35000 477921 5.56660 GE 100000 2.10000 331000 454100 610510 771561 9.40202 1143 1357940 15.90 100000 21000 10960 92114 661010 3352 10.72049 32215 10250 337 103 5.58471 7.52323 9.2000 7.44150 3.17519 10.0001 12.2008 12271 10 352210 106.306 12.40756 120703 TE 25879 15.07349 19.418 12.1990 16.900 201900 1102104 15.19293 10 1571 1672201 17.500 16 20302 33.25290 . TO 19561 2270019 26.21164 2017111 27.77075 2200161 7350050 OCROSS Future Value of Annuity of 51 3.0 11 1664549 12 17 21.43530 14 24 21492 15 22.15211 201201 TT 3375021 10 19 41 4426 20 71.10500 113.2021 22.12.200 1127971 350101 10 5001 17.56020 2014072 22.95330 2601018 2915092 11001140 36.97370 410004 4601846 5196013 6670000 1.53117 213020 2652711 22970 317724 35 23 4354419 4551 5115309 57 27500 501400 1644942 520366 SOL2550 40 1094 31055 SOOD 55 1750 501 750536 72 01511 10 10390056 12111667 54000 300 56374 66 2003 70 1041 7205244 1901 or 1555 21004650 272 55570 300 1354118 1227127 103 21279302 193.2008 2011 1157 Best of Af1 LOGO 7. 09123 STE 0.94 L02 262432 . 1151 272335 256595 41200 507569 5.78637 6.4321 7.1073 7.72173 2.67301 266511 421235 160051 LOT 519914 590 56631 550230 620970 410020 75654 5.1925 597130 551523 7.3000 C 7. 0641 306225 9.39357 S4 7587 338334 35250 9825 CONSO COM 10.11777 71225 50.0530 1061721 102750 1LISEZ 111699 12 1.667 794299 335755 276547 10791 94655 3.7622 100500 1160 0503 1168 120004 1 OV 1980 2 1340 194154 3 2500 . 2 27500 371710 32900 USO 465122 5.601 5479 5201 6.72019 6. 6.05790 500205 7.65156 7.32540 7010 56602 7.78511 7.52073 010 ESCO 221279 Present Value of any of 5 10 2.0 2.0 3.75 11 10750 217979 760 12 1057534 9.59 ta 12:13374 11.34337 10:63456 1014230 14 1300330 12.10635 1123001 1979 15 12.34926 117 1121530 16 101702 1357771 17012 12 15 56 103187 12. 10 16.10 1203 15:35 19 17.22601 155746 20 19 13515 14.8770 131620 25 22.02316 19.5230 1741315 30 25.80771 22 19.05 Present of 51 Paris . 1 0.9293 09110 0000 2 17033 09 1 SO 2.57710 2. 240 2.6033 25115 2 5 299221 1600 2054 501295 47100 456 ST 9 620 10 671000 5:4116 16022 Present of Any of 5 13.03 cos 5.SE 12 3.5 C 5175 13 740 7.1016 14 320034 775 30 15 56 1155 13 250 7.119 10 37555 30141 19 20 SUS 100 10250 7361 30 11 2010 73 ESSE HEST 1166 120652 126221 140 1517245 es SO LED IND centra| LES 2571 223323 0.00000 4000 5500 TETE 210610 1112 . 2 3.15278 102 2006 23555 250459 2016 30 4130 2009 2.9510 116114 3209 LE CINES 111 ST 2.5705 16 LEDE 5.542 RECE DOS 5 461057 LISTER GORE TE NEE 60 EN 153 ICE TCC COS RE POLO WE SIS 405 50 395505