Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 1/1/2018 $194,758 6/30/2018 $7,000 $7,790 $790 195,548 12/31/2018 7,000 7,822 822 196,370 6/30/2019 7,000 7,855 855 197,225 12/31/2019 7,000 7,889 889 198,114 6/30/2020 7,000 7,925 925 199,039 12/31/2020 7,000 7,961 961 200,000
Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 1/1/2018 $194,758 6/30/2018 $7,000 $7,790 $790 195,548 12/31/2018 7,000 7,822 822 196,370 6/30/2019 7,000 7,855 855 197,225 12/31/2019 7,000 7,889 889 198,114 6/30/2020 7,000 7,925 925 199,039 12/31/2020 7,000 7,961 961 200,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
ABC issued callable bonds on January 1, 2018. ABC's accountant has projected the following amortization schedule from issuance until maturity:
What is the annual stated interest rate on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate. (Round to nearest whole percentage and just put in the number without %)
Numeric Response:??????
Transcribed Image Text:Date
Cash Paid Interest Expense
Increase in
Carrying
Value
Carrying Value
1/1/2018
$194,758
6/30/2018
$7,000
$7,790
$790
195,548
12/31/2018
7,000
7,822
822
196,370
6/30/2019
7,000
7,855
855
197,225
12/31/2019
7,000
7,889
889
198,114
6/30/2020
7,000
7,925
925
199,039
12/31/2020
7,000
7,961
961
200,000
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