Final Answer:
1. Total Cash Proceeds Received: $1,010,000.
2. Market Rate of Interest: Higher than 8%.
Step-by-step explanation:
The total cash proceeds received when the bonds were issued can be calculated by multiplying the number of bonds (500) by the face value of each bond ($2,000) and the percentage issued at (102%). So, $2,000 * 500 * 102% = $1,010,000.
The market rate of interest is determined by comparing the face rate (8%) with the actual rate at which the bonds were issued (102%). Since the bonds were issued at a premium (higher than face value), the market rate is higher than the face rate.
Understanding the relationship between face rate, market rate, and bond issuance provides insights into investor perceptions and economic conditions. It also highlights the impact of premiums or discounts on total cash proceeds.
Your question is incomplete, but most probably your full question was Given the Following Information Answer the Questions Below 1. January 1st Our Business Issued 500 Bonds at 102%. 2. Each Bond had a Face Value of $2,000. 3. The Face Rate of Interest is 8%. 4. Interest is Payable Annually on December 31st. 5. The Maturity Date is 10 years from Now. $1,020,000 < Compute the Total Cash Proceeds Received when the Bonds were Issued. Lower than 8% > Is the Market Rate of Interest the Same, Higher, or Lower than 8%, on the Day The Bonds were issued? None of these Choices < Compute the Amount Shown as Bonds Payable on the Balance Sheet at the end of Year One Compute the Amount of Total Interest Paid Annually(each Year). None of these Choices V Compute the Amount Shown as Bonds Payable at the End of Year Choose ]