2 Tano Company issues bonds with a par value of $180,000 on January 1 of the current year. The bonds' annual contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 10%, and the bonds are sold for $170,864. 1. What is the amount of the discount on these bonds at issuance? Discount 2. How much total bond interest expense will be recognized over the life of these bonds