1. On January 1, 2018 Carter Corporation wishes to issue $1,000,000 of its 6%, 10-year bonds. The bonds pay interest annually on January 1. The current market rate on such bonds is 5%. (Round time value factors to four decimal places.)

Cash Received upon Issuance ________________________________ _____

2. On January 1, 2017, Gore Co. sold to Cey Corp. $800,000 of its 10% bonds for $708,236 to yield 12%. Interest is payable semiannually on January 1 and July 1. What amount should Gore report as interest expense for 2017. _______________________________________ _____

3. Ziggy is considering purchasing a new car. The cash purchase price for the car is $39,200. What is the annual interest rate if Ziggy is required to make annual payments of $9,100 at the end of the next five years? ______________________________ _____