18) Kash nâ Karry issues $50 million of bonds on January 1, 2018that pay interest semiannually on June 30 and December 31. Portionsof the bond amortization schedule appear below: Date Cash PaidInterest Expense Decrease in Carrying Value Carrying Value 1/1/2018$55,338,768 6/30/2018 2,000,000 1,936,857 63,143 55,275,62512/31/2018 2,000,000 1,934,647 65,353 55,210,272.
1. Were the bonds issued at face amount, a discount, or apremium?
2. What is the original issue price of the bonds?
3. What is the face amount of the bonds?
4. What is the stated annual interest rate? (Hint: Be sure toprovide the annual rate rather than the six month rate.)
5. What is the market annual interest rate? (Hint: Be sure toprovide the annual rate rather than the six month rate.)
6. What is the total cash paid for interest assuming the bondsmature in 20 years?