Discount-Mart issues $19 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: Date 01/01/2021 06/30/2021 $950,000 $1,009,243 12/31/2021 950,000 1,012,797 06/30/2022 950,000 12/31/2022 950,000 Cash Paid Multiple Choice O 5% Interest Expense 12%. What is the market 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.) 10% 1,016,565 1,020,559 Increase in Carrying Value $59,243 62,797 66,565 70,559 Carrying Value $16,820,715 16,879,958 16,942,755 17,009,320 17,079,879

Discount-Mart issues $19 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: Date 01/01/2021 06/30/2021 $950,000 $1,009,243 12/31/2021 950,000 1,012,797 06/30/2022 950,000 12/31/2022 950,000 Cash Paid Multiple Choice O 5% Interest Expense 12%. What is the market 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.) 10% 1,016,565 1,020,559 Increase in Carrying Value $59,243 62,797 66,565 70,559 Carrying Value $16,820,715 16,879,958 16,942,755 17,009,320 17,079,879

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...

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