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***just need B answered** Cassin Corporation sold $2.5 million worth of 20-year, 6.5% bonds on July 1, 20x3. The bonds will pay interest every December 31 and June 30. Required: a. What will be Cassin's total interest expense over the life of the bonds if the bonds are sold at 96? Amount repaid Cash paid for interst (2500000*6.25%*20) 3,250,000 Maturity Value 2,500,000 Total repaid 5,750,000 Less: Issue prpice (2500000*.96) -2,400,000 Total interest expense 3,350,000 b. What will be Cassin's total interest expense over the life of the bonds if the bonds are sold at 96? Total interest expense will be $3,350,000
Gith Golden Haleyra Cassin Meerman Duty Gith Golden Haleyra Cassin Meerman Duty
***just need B answered**Cassin Corporation sold $2.5 million worth of 20-year, 6.5% bonds on July 1, 20x3. The bonds will pay interest every December 31 and June 30. | |||||
| Required: | |||||
| a. | What will be Cassin's total interest expense over the life of the bonds if the bonds are sold at 96? | ||||
| Amount repaid | |||||
| Cash paid for interst (2500000*6.25%*20) | 3,250,000 | ||||
| Maturity Value | 2,500,000 | ||||
| Total repaid | 5,750,000 | ||||
| Less: Issue prpice (2500000*.96) | -2,400,000 | ||||
| Total interest expense | 3,350,000 | ||||
| b. | What will be Cassin's total interest expense over the life of the bonds if the bonds are sold at 96? | ||||
| Total interest expense will be $3,350,000 | |||||
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