Pool Corporation Inc. is the world's largest wholesale distributor of swimming pool supplies and equipment. It is a publicly traded corporation that trades on the NASDAQ exchange under the symbol POOL. It sells these products to swimming pool repair and service businesses, swimming pool builders, and retail swimming pool stores. The majority of these customers are small, family-owned businesses. The current financial statements for Pool show that the company borrowed approximately $750,000,000 during 2017. For purposes of this case, assume that Pool borrowed the money on January 1, 2017, at an interest rate of 3.95 percent when the market rate was also 4 percent. The debt matures in 10 years. Pool pays interest on this debt on June 30 and December 31 of each year.

Required :
1. What was the issue price on January 1, 2017?
2. What amounts of interest expense should be recorded on June 30, 2017, and on December 31, 2017?
3. Determine the carrying amounts of the bonds at December 31, 2017, and December 31, 2018.