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: Cash paid Interest expense...


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:





















































Cash paidInterest expenseDecrease in carrying valueCarrying value
Date
01/01/202151,324,372
06/30/2021$2,350,000$2,309,597$40,40351,283,969
12/31/20212,350,0002,307,77942,22151,241,748

What is the stated annual interest rate? (Hint: Be sure to provide the annual rate rather than the six-month rate.)


















Stated annual interest rate%



What is the market annual interest rate? (Hint: Be sure to provide the annual rate rather than the six-month rate.)


















Market annual interest rate%





6. What is the total cash paid for interest assuming the bonds mature in 20 years?

















Interest paid




Jun 08, 2022
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