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Required information Problem 9-5B Understand a bond amortization schedule (LO9-5) (The following information applies to the questions displayed below.) Temptation Vacations issues $60 million in
Required information Problem 9-5B Understand a bond amortization schedule (LO9-5) (The following information applies to the questions displayed below.) 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: (1) (2) Cash Paid for Interest (3) Interest Expense (4) Decrease in Carrying Value Date 1/1/2021 6/30/2021 12/31/2021 (5) Carrying Value $66,934,432 66,842,465 66,747,739 $2,100,000 2,100,000 $91,967 $2,008,033 2,005, 274 94,726 2. What is the original issue price of the bonds? (Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000)) Issue price 3. What is the face amount of the bonds? (Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000)) Face amount 4. What is the stated annual interest rate? Stated annual interest rate 5. What is the market annual interest rate? (Round your answer to the nearest whole percent.) Market annual interest rate % 6. What is the total cash paid for interest assuming the bonds mature in 20 years? (Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000)) Total cash interest
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