1. Blossom Inc. issued $864,000 of 10-year, 4% bonds on January 1, 2021. Interest is to be paid semi-annually. The market interest rate was 5%.

What will the interest payments be every six months?

2. On January 1, 2020, Larkspur Inc. issued $470,000 of 6-year, 4% bonds to yield a market interest rate of 5%. Interest is paid every quarter on January 1, April 1, July 1, and October 1. Larkspur has a calendar year-end. After recording the December 31, 2021 accrual for quarterly interest, and making the payment on January 1, 2022, all the bonds were redeemed at 101.

Use Excel or a financial calculator to determine how much the company received from the sale of these bonds.

The company received