Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. discount-mart issues $11 million in bonds on janua

Discount-Mart issues $11 million in bonds on January 1, 2021. The bonds have a ten-year...

90.2K

Verified Solution

Question

Accounting

image

Discount-Mart issues $11 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: 8 00 Interest Expense Increase in Carrying Value Cash Paid 8 00:19:36 Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 $550,000 550,000 550,000 550,000 $584,299 586,356 588,538 590,850 $34,299 36,356 38,538 40,850 Carrying Value $9,738,309 9,772,608 9,808,964 9,847,502 9,888,352 Print 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.) Multiple Choice 10% O o 5%. 11% O 12%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students