1. Park Corporation issued a ten-year $10,000,000 bond with an 8 percent face interest rate that is paid semi-annually. If the market interest rate is 6 percent, how much money will Park receive?

$8,888,000

$9,689,000

$10,999,000

$11,488,000

2. Refer to Question 1. What is the interest expense for the first period?

$104,874

$184,650

$290,464

$344,640

3. Refer to Questions 1 and 2. What is the carrying value of the note at the end of the first period?

$8,654,324

$9,748,668

$10,824,516

$11,432,640