Auerbach Inc. issued 4% bonds on October 1, 2013. The bonds have a maturity date of September 30, 2023 and a face value of $300 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2014. The effective interest rate established by the market was 6%.

1/ How much cash interest does Auerbach pay on March 31, 2014? (Answer: 6.0 million)

2/ Assuming that Auerbach issued the bonds for $255,369,000, what interest expense would it recognize in its 2013 income statement? (Answer: $3,830,535)

3/ Assuming that Auerbach issued the bonds for $255,369,000, what would the company report for its net bond liability balance at December 31, 2013, rounded up to the nearest thousand? (Answer: $256,200,000)

4/ Assuming that Auerbach issued the bonds for $255,369,000, what would the company report for its net bond liability balance after its first interest payment on March 31, 2014, rounded up to the nearest thousand? (Answer: $257,030,000)

*Please help me explain how to calculate for each question!