Question

Myriad Solutions, Inc., issued 14% bonds, dated January 1, with a face am ount of $410 million on January 1, 2018. bonds mature on December 31, 2027(10 years). For bonds of similar risk and maturity the market yield is 16% Interest is paid semiannually on June 30 and December 31 Required: Complete the table below to calculate the amounts related to the bonds that Myriad would report in its financial statements. Indicate the amounts reported on the financial statements below for the year ending December 31, 2018 Complete this question by entering your answers in the tabs below Financial Complete the table below to calculate the amounts related to the bonds that Myriad would report in its financial statements. (Round your answers to the nearest whole dollar.) Discount Bond Interest Expense Period-End Cash Interest Paid Amortization Carrying Value 01/01/2018 06/30/2018 12/31/2018 Total Calculation Financial Statement>

Answer 1

Face Value of Bonds = $410,000,000
Proceed from Issue = $369,746,405

Annual Coupon Rate = 14%
Semiannual Coupon Rate = 7%
Semiannual Coupon = 7% * $410,000,000
Semiannual Coupon = $2,870,000

Annual Interest Rate = 16%
Semiannual Interest Rate = 8%