Discount-Mart issues $19 million in bonds on January 1, 2021. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date 01/01/2021 06/30/2021 $950,000 $1,009,243 12/31/2021 950,000 1,012,797 06/30/2022 950,000 12/31/2022 950,000 Cash Paid Multiple Choice O 5% Interest Expense 12%. What is the market annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your intermediate calculations.) 10% 1,016,565 1,020,559 Increase in Carrying Value $59,243 62,797 66,565 70,559 Carrying Value $16,820,715 16,879,958 16,942,755 17,009,320 17,079,879
Discount-Mart issues $19 million in bonds on January 1, 2021. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date 01/01/2021 06/30/2021 $950,000 $1,009,243 12/31/2021 950,000 1,012,797 06/30/2022 950,000 12/31/2022 950,000 Cash Paid Multiple Choice O 5% Interest Expense 12%. What is the market annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your intermediate calculations.) 10% 1,016,565 1,020,559 Increase in Carrying Value $59,243 62,797 66,565 70,559 Carrying Value $16,820,715 16,879,958 16,942,755 17,009,320 17,079,879
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Discount-Mart issues $19 million in bonds on January 1, 2021. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization
schedule for the bonds:
Mc
Graw
Hill
Date
01/01/2021
06/30/2021 $950,000 $1,009,243
12/31/2021 950,000
1,012,797
06/30/2022 950,000
12/31/2022 950,000
schedule for the bonds
F1
Cash Paid
Multiple Choice
O
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What is the market annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your intermediate calculations.)
5%.
12%.
Interest
Expense
10%.
F2
1,016,565
1,020,559
Highlight All
80
F3
JUL 1
Increase in
Carrying Value
10
$59,243
62,797
66,565
70,559
Match Case
000
Carrying
Value
$16,820,715
16,879,958
16,942,755
17,009,320
17,079,879
F4
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