Federated Paint Co. produces and sells spray painting equipment for construction contractors. On the first day of its fiscal year, Federated Paint Co. issued $32,500,000 of five-year, 12% bonds at an effective interest rate of 11%, with interest payable semiannually. Compute the following, presenting figures used in your computations.
a. The amount of cash proceeds from the sale of the bonds. (Use the tables of present values in Exhibits 3 and 4. Round to the nearest dollar.)

b. The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. (Round to the nearest dollar.)
c. The amount of premium to be amortized for the second semiannual interest payment period, using the interest method. (Round to the nearest dollar.)
d. The amount of the bond interest expense for the firstyear.

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Present Vau of at Compound Interest Periods 5% 7% 10% 11% 12% 13% 14% 0.95238 0.94787 0.94340 0.93897 0.93458 0.90909 0.90090 0.89286 0.88496 0.87719 2 0.90703 0.89845 0.89000 0.88166 087344 0.82645 0.81162 0.79719 0.78315 0.76947 3 0.86384 0.85161 0.83962 0.82785 0.81630 0.75132 073119 0.71178 0.69305 0.67497 4 0.82270 0.80722 0.79209 0.77732 0.76290 0.68301 0.65873 0.63552 0.61332 0.59208 5 0.78353 0.76513 0.74726 0.72988 0.71299 0.62092 0.59345 0.56743 0.54276 0.51937 6 0.74622 0.72525 0.70496 0,68533 0.66634 0.56447 0.53464 0.50663 048032 045559 7 0.71068 0.68744 0.66506 0.64351 0.62275 0.51316 0.48166 0.45235 042506 0.39964 8 0.67684 0.65160 0.62741 0.60423 0.58201 0.46651 0.43393 0.40388 0.37616 0.35056 9 0.64461 0.61763 0.59190 0.56735 0.54393 0.42410 039092 0.36061 0.33288 0.30751 10 0.61391 0.58543 0.55840 0.53273 0.50835 0.38554 0.35218 0.32197 0.29459 0.26974 Present Value o Annuity of S1 at Compound Interest Periods 5% 10% 11% 12% 13% 14% 10.95238 0.94787 0.94340 0.93897 0.93458 090909 0.90090 0.89286 0.88496 0.87719 2 185941 1.84632 1.83339 1.82063 1.80802 1.73554 1.71252 1.69005 1.66810 1.64666 3 2.72325 2.69793 2.67301 2.64848 2.62432 2.48685 2.44371 2.40183 2.36115 2.32163 4 3.54595 3.50515 3.46511 3.42580 338721 3.16987 3.10245 3.03735 2.97447 2.91371 5 4.32948 4.27028 4.21236 4.15568 4.10020 3.79079 3.69590 3.60478 3.51723 3.43308 6 5.07569 4.99553 4.91732 4.84101 4.76654 4.35526 4.23054 4.11141 3.99755 3.88867 7 5.78637 5.68297 5.58238 5.48452 5.38929 486842 4.71220 4.56376 442261 4.28830 8 6.46321 6.33457 6.20979 6.08875 597130 5.33493 5.14612 4.96764 4.79677 4.63886 9 710782 6.95220 6.80169 6.65610 6.51523 5:75902 5.53705 5.32825 5.13166 4.94637 10 7.72174 7.53763 7.36009 7.18883 7.02358 6.14457 5.88923 5.65022 5.42624 5.21612