32 Required information [The following information applies to the questions displayed below.] Temptation Vacations issues $49 million in bonds on January 1, 2024, that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: (1) Date 1/1/2024 6/30/2024 12/31/2024 (2) Cash Paid for Interest $1,470,000 1,470,000 Stated annual interest rate (3) Interest Expense 4. What is the stated annual interest rate? $1,378,755 1,376,473 % (4) Decrease in Carrying Value $91,245 93,527 (5) Carrying Value $55,150, 180 55,058,935 54,965,408
32 Required information [The following information applies to the questions displayed below.] Temptation Vacations issues $49 million in bonds on January 1, 2024, that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: (1) Date 1/1/2024 6/30/2024 12/31/2024 (2) Cash Paid for Interest $1,470,000 1,470,000 Stated annual interest rate (3) Interest Expense 4. What is the stated annual interest rate? $1,378,755 1,376,473 % (4) Decrease in Carrying Value $91,245 93,527 (5) Carrying Value $55,150, 180 55,058,935 54,965,408
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
![### Required Information
**[The following information applies to the questions displayed below.]**
Temptation Vacations issues $49 million in bonds on January 1, 2024, that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below:
| Date | Cash Paid for Interest | Interest Expense | Decrease in Carrying Value | Carrying Value |
|------------|-------------------------|------------------|----------------------------|-----------------|
| 1/1/2024 | - | - | - | \$55,150,180 |
| 6/30/2024 | \$1,470,000 | \$1,378,755 | \$91,245 | \$55,058,935 |
| 12/31/2024 | \$1,470,000 | \$1,376,473 | \$93,527 | \$54,965,408 |
**Question 4:** What is the stated annual interest rate?
---
**4. What is the stated annual interest rate?**
**Stated annual interest rate:**
*The user is prompted to enter the stated annual interest rate in the provided field.*
### Explanation of Graphs or Diagrams
In the table presented:
- **Column (1):** Lists the dates on which bond-related transactions occur.
- **Column (2):** Lists the cash amount paid for interest on the bonds at each date.
- **Column (3):** Shows the interest expense recorded for each period.
- **Column (4):** Displays the decrease in the carrying value of the bonds for each period.
- **Column (5):** Shows the carrying value of the bonds at the end of each period.
The table starts with the initial carrying value of the bonds on January 1, 2024, and shows subsequent changes in the carrying value as of June 30, 2024, and December 31, 2024, following the amortization schedule.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96754444-8db0-4381-98d5-32976fba1a32%2F60b4a0ab-7a97-4a5d-915b-a3ad46c66c0a%2Fqgvbbgr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Required Information
**[The following information applies to the questions displayed below.]**
Temptation Vacations issues $49 million in bonds on January 1, 2024, that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below:
| Date | Cash Paid for Interest | Interest Expense | Decrease in Carrying Value | Carrying Value |
|------------|-------------------------|------------------|----------------------------|-----------------|
| 1/1/2024 | - | - | - | \$55,150,180 |
| 6/30/2024 | \$1,470,000 | \$1,378,755 | \$91,245 | \$55,058,935 |
| 12/31/2024 | \$1,470,000 | \$1,376,473 | \$93,527 | \$54,965,408 |
**Question 4:** What is the stated annual interest rate?
---
**4. What is the stated annual interest rate?**
**Stated annual interest rate:**
*The user is prompted to enter the stated annual interest rate in the provided field.*
### Explanation of Graphs or Diagrams
In the table presented:
- **Column (1):** Lists the dates on which bond-related transactions occur.
- **Column (2):** Lists the cash amount paid for interest on the bonds at each date.
- **Column (3):** Shows the interest expense recorded for each period.
- **Column (4):** Displays the decrease in the carrying value of the bonds for each period.
- **Column (5):** Shows the carrying value of the bonds at the end of each period.
The table starts with the initial carrying value of the bonds on January 1, 2024, and shows subsequent changes in the carrying value as of June 30, 2024, and December 31, 2024, following the amortization schedule.
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