5. XYZ Corporation issued $500,000,8%,5 year bonds on January 1, 2008. These bonds will pay interest semi-unnually on June 30 and December 31 . When the bonds were sold, the effective rate of interest was 10%. XYZ's year end is December 31 . a. Determine the selling price of the bonds: S b. Determine the amount of the Premium or Discount on Jan. 1, 2008: 5 c. Prepare an amortization schedule for the first two years using the effective interest method: (round to the nearest dollar) d. What amount will the company report ns interest expense on their Income Statem ent for the year ended December 31,2008 ? e. What is the unamortized discount or premium on January 1,2009? S f. What is the total cost of borrowing to XYZ over the life of this bond? S g. If XYZ retired the bonds early on January 1,2010 at a repurchase price of 102, determine the gain/loss the company would record for the carly extinguishment of this debt