Sun City issues bonds on January 1, 2012 that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Required:
1. Were the bonds issued at face amount, a discount, or a premium?
2. What is the original issue price of the bonds?
3. What is the face amount of the bonds?
4. What is the term to maturity in years?
5. What is the stated annual interest rate?
6. What is the market annual interest rate?
7. What is the total cash interest paid over the term to maturity?

Question

Sun City issues bonds on January 1, 2012 that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below:  Required:
1. Were the bonds issued at face amount, a discount, or a premium?
2. What is the original issue price of the bonds?
3. What is the face amount of the bonds?
4. What is the term to maturity in years?
5. What is the stated annual interest rate?
6. What is the market annual interest rate?
7. What is the total cash interest paid over the term to maturity?

Quizplus · Accepted Answer

The Answer of Sun City issues bonds on January 1, 2012 that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below:  Required:
1. Were the bonds issued at face amount, a discount, or a premium?
2. What is the original issue price of the bonds?
3. What is the face amount of the bonds?
4. What is the term to maturity in years?
5. What is the stated annual interest rate?
6. What is the market annual interest rate?
7. What is the total cash interest paid over the term to maturity?

Sun City Issues Bonds on January 1, 2012 That Pay