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exercise 9-11a record bonds issued at a discount and related semiannual interest (lo9-5) skip to question [the following information applies to the questions displayed below.] on january 1, 2021, white water issues $600,000 of 7% bonds, due in 10 years, with interest payable semiannually on june 30 and december 31 each year. assuming the market interest rate on the issue date is 8%, the bonds will issue at $559,229.

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Interest is compounded semiannually, it manner that the compounding period is six months. therefore, when you have a five-12 months loan that compounds interest semiannually.

Semi-annual likewise referred to as bi-annual, is when an event takes place twice a year, every six months. In a business environment, semiannual is something that is recurring like payments or an interest rate. Semiannual and biennial are every so often pressured with every difference.

Date             Cash      Interest      Increase in Carrying Value Carrying Value

01/01/2021                                                           $559,229.

06/30/2021 600000 642000 42000                                642000

12/31/2021 600000 642000 42000                                  684000

Cash paid-600000*7%*6/12 = 42000

Interest expense-

06/30/2021 -  642000 * 8% *6/12 = 25680

12/31/2021 - 684000* 8% *6/12 = 27360

Learn more about semiannual interest here:-https://brainly.com/question/28099343

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