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Pool Corporation, Incorporated, 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, Incorporated, 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 annual market rate of interest was percent. The debt matures in years, and Pool makes interest payments semiannually on June and December FV of $ PV of $ FVA of $ and PVA of $Use appropriate factors from the tables provided.
Required:
What was the issue price on January of this year?
What amount of interest expense should be recorded on June and December of this year?
What amount of cash interest should be paid on June and December of this year?
What is the book value of the bonds on June and December of this year?
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