Astro World issues $20 million in bonds on January 1, 2021 that pay interest semi-annually on June 30 and December 31. A

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Astro World Issues 20 Million In Bonds On January 1 2021 That Pay Interest Semi Annually On June 30 And December 31 A 1 (35.31 KiB) Viewed 11 times

Astro World issues $20 million in bonds on January 1, 2021 that pay interest semi-annually on June 30 and December 31. A Portion of the bond amortization schedule appears below: Date 01/01/2021 06/30/2021 $600,000 $625,257 12/31/2021 600,000 626,141 Cash Paid Interest Expense 1. Were the bonds issued? 2. Issue price Increase in Carrying Value 3. Face amount 4. Stated annual interest rate 5. Market annual interest rate 6. Total cash interest $25,257 26,141 Required: 1. Were the bonds issued at face amount, a discount, or a premium? 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)) 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)) 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? (Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000)) Carrying Value $17,864,493 17,889,750 17,915,891 % %