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Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity: Interest Expense
Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity: Interest Expense Cash Paid Increase in Carrying Value Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 $12,400 12,400 12,400 12,400 12,400 12,400 $14,713 14,829 14,950 15,78 15, 212 15,352 $2,313 2,429 2,550 2,678 2,812 2,952 Carrying Value $294, 266 296,579 299,008 301,558 304,236 307,048 310,000 What is the annual stated interest rate on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your intermediate calculations.) Multiple Choice 10% O O 4% O 9%. O 8%
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