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Pool Corporation Inc. sells swimming pool supplies and equipment. It is a publicly traded corporation that trades on the NASDAQ exchange. The majority of Pool's
Pool Corporation Inc. sells 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, familyowned businesses.
Assume that Pool issued bonds with a face value of $ on January of this year and that the
coupon rate is percent. At the time of the borrowing, the market interest rate was percent. The debt
matures in years. Pool pays interest on this debt on June and December of each year.
Required:
What was the issue price on January of this year? Do not round intermediate calculations. Enter
your answers in thousands rounded to the nearest whole thousand.
Issue price
What amounts of interest should be paid on June and December of this year? Do not round
intermediate calculations. Enter your answers in thousands rounded to the nearest whole
thousand.
What amounts of interest expense should be recorded on June and December of this year?Do
not round intermediate calculations. Enter your answers in thousands rounded to the nearest
whole thousand.
June This Year
December Next Year
Determine the carrying amounts of the bonds on June and December of this year. Do not
round intermediate calculations. Enter your answers in thousands rounded to the nearest whole
thousand.
June This Year
December Next Year
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