Sun City issues $47 million of bonds on January 1, 2021 that pay interest semiannually on June 30 and December 31. A portion of the bond amortization schedule appears below:
What is the stated annual interest rate? (Hint: Be sure to provide the annual rate rather than the six-month rate.)
What is the market annual interest rate? (Hint: Be sure to provide the annual rate rather than the six-month rate.)
6. What is the total cash paid for interest assuming the bonds mature in 20 years?
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