-Mart issues $12 mimo es a partial bond amortization schedule for the bonds: Date 01/01/2024 06/30/2024 12/31/2024 06/30/2025 12/31/2025 Cash Paid Interest Expense $600,000 $637,417 600,000 639,662 600,000 642,041 600,000 644,564 The bor have a ten-year term and pay interest sem Increase in Carrying Value $37,417 39,662 42,041 44,564 Carrying Value $10,623,609 10,661,026 10,700,688 10,742,729 10,787,293 June 30 and What is the stated 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.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Discount-Mart issues $12 million in bonds on January 1, 2024. 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
01/01/2024
06/30/2024
12/31/2024
06/30/2025
12/31/2025
Interest
Expense
$600,000 $637,417
HIT
639,662
642,041
644,564
Cash Paid
600,000
600,000
Increase in
Carrying Value
600,000
$37,417
39,662
42,041
44,564
Carrying
Value
$10,623,609
10,661,026
10,700,688
10,742,729
10,787,293
What is the stated 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.)
Transcribed Image Text:Discount-Mart issues $12 million in bonds on January 1, 2024. 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 01/01/2024 06/30/2024 12/31/2024 06/30/2025 12/31/2025 Interest Expense $600,000 $637,417 HIT 639,662 642,041 644,564 Cash Paid 600,000 600,000 Increase in Carrying Value 600,000 $37,417 39,662 42,041 44,564 Carrying Value $10,623,609 10,661,026 10,700,688 10,742,729 10,787,293 What is the stated 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.)
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