Solution-What was the issue price on january of this year

What was the issue price on january of this year

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Question - Pool Corporation Inc. is the world's largest wholesale distributor of swimming pool supplies and equipment. It is a publicly traded corporation that trades on the NASDAQ exchange under the symbol POOL. It sells these products to swimming pool repair and service businesses, swimming pool builders, and retail swimming pool stores. The majority of these customers are small, family-owned businesses. Assume that Pool issued bonds with a face value of $750,000,000 on January 1 of this year and that the coupon rate is 5 percent. At the time of the borrowing, the market rate of interest was 4 percent. The debt matures in 10 years. Pool pays interest on this debt on June 30 and December 31 of each year.

Required -

1. What was the issue price on January 1 of this year?

2. What amounts of interest expense should be recorded on June 30 and December 31 of this year?

3. Determine the carrying amounts of the bonds on June 30 and December 31 of this year.

Reference no: EM133140484

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What was the issue price on january of this year

Reference no: EM133140484

Reference no: EM133140484

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