Max Industries Ltd. borrowed money by issuing a $10,000 6.5%, 10-year bond. Assume the issue price was 94 on July 1, 2014.

1. How much cash did Max Industries receive when it issued the bond?

2. How much must Max Industries pay back at maturity? When is the maturity date?

3. How much cash interest will Max Industries pay each six months? Carry the interest amount to the nearest cent.

4. How much interest expense will Max Industries report each six months? Assume the straight-line amortization method, and carry the interest amount to the nearest cent.