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[The following information applies to the questions displayed below. Temptation Vacations issues $41 million in bonds on January 1, 2018, that pay interest semiannually on
[The following information applies to the questions displayed below. Temptation Vacations issues $41 million in bonds on January 1, 2018, that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Cash Paid for Interest Interest Expense Decrease in Carrying Value Carrying Value Date $45,738,528 11/2018 6/30/2018 12/31/2018 $1,435,000 1,435,000 $1,372,156 1,370,271 $62,844 64,729 45,675,684 45,610,955 1. Were the bonds issued at face amount, a discount, or a premium? 2. What is the original issue price of the bonds? 3. What is the face amount of the bonds? 4. What is the stated annual interest rate? 5. What is the market annual interest rate? 6. What is the total cash paid for interest assuming the bonds mature in 20 years
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