Question
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 Increase
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 Increase in Carrying Interest Date Cash Paid Expense Carrying Value Value 01/01/2021 06/30/2021 $190,165 $10,000 $11,410 $1,410 191,575 12/31/2021 10,000 11,495 1,495 193,070 06/30/2022 10,000 11,584 1,584 194,654 12/31/2022 10,000 11,679 1,679 196,333 06/30/2023 12/31/2023 10,000 10,000 11,780 1,780 198,113 1,887 200,000 What is the annual market 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
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