Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity:DateCash PaidInterest ExpenseIncrease in Carrying ValueCarrying Value01/01/2021 $194,758 06/30/2021$7,000 $7,790 $790 195,548 12/31/2021 7,000 7,822 822 196,370 06/30/2022 7,000 7,855 855 197,225 12/31/2022 7,000 7,889 889 198,114 06/30/2023 7,000 7,925 925 199,039 12/31/2023 7,000 7,961 961 200,000 What is the annual stated interest rate on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.)
A. 6%.
B. 3%.
C. 3.5%.
D. 7%.
Answer: D
You might also like to view...
Answer the following statements true (T) or false (F)
1. A consequence faced by companies that relocate their facilities is a drop in market share. 2. A factor that influences the choice of a global location is the lead time. 3. A factor that influences the choice of a global location is the ISO requirements. 4. Fishing is an industry that would need to relocate due to depleted raw materials or natural resources.
A pronoun (or noun) that follows a preposition is the object of the ________
a. preposition b. antecedent
The law that prohibits any combination in restraint of trade is the ____________________ Act
Fill in the blank(s) with correct word
Which of the following statements is CORRECT?
A. Suppose a firm's total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10% and its debt increases from 40% of total assets to 60%. The firm finances using only debt and common equity, and total assets equal total invested capital. Under these conditions, the ROE will increase. B. Suppose a firm's total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10% and its debt increases from 40% of total assets to 60%. The firm finances using only debt and common equity, and total assets equal total invested capital. Without additional information, we cannot tell what will happen to the ROE. C. The DuPont equation provides information about how operations affect the ROE, but the equation does not include the effects of debt on the ROE. D. Other things held constant, an increase in the total debt to total capital ratio will result in an increase in the profit margin. E. Suppose a firm's total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10%and its debt increases from 40% of total assets to 60%. The firm finances using only debt and common equity, and total assets equal total invested capital. Under these conditions, the ROE will decrease.