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Problem 9-5B Understand a bond amortization schedule (LO9-5) Decrease in Temptation Vacations issues $60 million in bonds on January 1, 2021, that pay interest
Problem 9-5B Understand a bond amortization schedule (LO9-5) Decrease in Temptation Vacations issues $60 million in bonds on January 1, 2021, that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Cash Paid Interest Carrying Date 1/1/21 for Interest Expense Carrying Value Value 66,934,432 6/30/21 2,100,000 2,008,033 12/31/21 2,100,000 2,005,274 91,967 66,842,465 94,726 66,747,739| Required 1: Were the bonds issued at face amount, a discount, or a premium? Required 2: What is the original issue price of the bonds? Required 3: What is the face amount of the bonds? Required 4: What is the stated annual interest rate? Show all work below for FULL CREDIT. If no work is shown, credit will not be given. Required 5: What is the market annual interest rate? Show all work below for FULL CREDIT. If no work is shown, credit will not be given. Required 6: What is the total cash paid for interest assuming the bonds mature in 20 years? Show all work below for FULL CREDIT. If no work is shown, credit will not be given.
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