This announcement appears as a matter of record only. Centaga Corporation, Inc. $100,000,000 8.9\% Series E Secured Debentures due May 16, 2025 guaranteed by Centaga Corporation and Company, Limited Partnership Interest is payable on November 16 and May 16. The annual cash interest payment on the bonds is 3 issuance was 9.5 percent. (Enter amounts in whole dollars, 3,0 ) Requirement 4. Compute Contaga Corporation's interest expense for the frit full year ended May 16, 2021, under the effective interes doltara, $x,x. The internat expense for the fest year is $ Requirement 5 . Avother company's issue of unsecured bonds for 521,750,000 was issued the same dayc it bore an interest rate of 12 . than for the Centaga Corporation issue? The bond issue for 521,750,000 is caming an interest rate of 12.3 percent (which is higher than the Centaga issue) because it is lkely In order to attact imestors, the interest rate would have to be greater than the Centaga bond issue, which is a secured debenture, as noted in the advertinement. Advertisement This announcement appears as a matter of record only. Centaga Corporation, Inc. $100,000,000 8.9% Series E Secured Debentures due May 16, 2025 guaranteed by CentagaCorporation and Company, Limited Partnership Interest is payable on November 16 and May 16. Required 1. Suppose investors purchased these securities at 96 on May 16, 2020. Describe the transaction in detail, indicating who received cash, who paid cash, and how much. 2. Compute the annual cash interest payment on the Centaga Corporation bonds. 3. Prepare an effective-interest amortization table for Centaga Corporation's first two payments, on November 16, 2020, and May 16, 2021. Assume the market rate at the date of issuance was 9.5 percent. 4. Compute Centaga Corporation's interest expense for the first full year ended May 16, 2021, under the effective-interest amortization method. 5. Another company's issue of unsecured bonds for $21,750,000 was issued the same day; it bore an interest rate of 12.3 percent. Why was the rate so much higher for this issue than for the Centaga Corporation issue? Requirement 1. Suppose investors purchased these securities at 96 on May 16,2020 . Describe the transaction in detai, hdicating who received cash, who paid cansh, and how much. Centaga Corporation issued the bonds to irwestors in order to borrow from investors. Centaga Corporation recelved eash, and the investon paid cash of amount of the debentures payable on Centaga Corporasion's books is with a Discount on Debentures Payable of Requirement 2. Compute the annual cash interest payment on the Contaga Corporation bonds. (Enter the amount in whole dollars, 5,XXC ) The annual cash interest payment on the bonds is 3 Requirement 3. Prepare an effective-interest amortization table for Centaga Corporaton's first two payments, on November 16,2020 , and May 16, 2021. Assume the market rale at the da'a issuance was 9.5 percent. (Enter amounts in whole dollars, $,0.) Requirement 4. Compute Centega Coporation's interest expense for the first full year ended May 16., 2021, under the elfective-intereat amortization method (Enter the amount in whole dollars, 3,00 ). dollare, 3,0x, The interest expense for the first year is 3 Requilrement 5. Another company's iesue of unsecured bonds for $21,750.000 was lssued the same day; it bore an interest rate of 12.3 percont. Wiry was the rate 00 much higher for this istun Bion for the Contaga Corporatice issue? tian for the Contaga Corporation issue? The bond issue for $21,750.000 is carrying an intereat rate of 12.3 percent (which is higher than the Centaga issue) because it is tikely In arder to atreact