Transfer Sales Company is planning a major expansion of its operations and needs \(\$ 2.5\) million to finance the expansion. The company has been presented with three alternative financing proposals. Each involves issuing bonds that pay interest semiannually. The alternatives are:

Plan A: Issue at par \(\$ 2.5\) million of 10 -year, \(12 \%\) bonds.

Plan B: Issue \(\$ 2,830,000\) of 10 -year, \(10 \%\) bonds.

Plan C: Issue \(\$ 2,250,000\) of 10 -year, \(14 \%\) bonds.

Regardless of which plan is followed, the market rate of interest for the bonds is expected to be \(12 \%\).
For each bond issue, calculate the cash proceeds of the issue, the interest expense for the first six-month period, and the expected cash outflow each six-month period for interest. Use the interest method to amortize bond premium or discount. Which plan has the smallest cash demands on the company prior to the final payment at maturity? Which requires the largest payment on maturity?