Using bond tables; computing interest expense. Refer to Table 5 at the back of the book for 10 -percent semiannual coupon bonds. On January 1, Year 1, assume that Florida Edison Company issued \(\$ 1\) million face value, 10 percent semiannual coupon bonds maturing in 10 years (on December 31, Year 10) at a price to yield 12 percent per year, compounded semiannually. Use the effective interest method of computing interest expense.

a. What were the proceeds of the original issue?

b. What was the interest expense for the first half of Year 1?

c. What was the interest expense for the second half of Year 1?

d. What was the book value of the bonds on January 1, Year 6 (when the bonds have five years until maturity)?

e. What was the interest expense for the first half of Year 6?