Below is a portion of the amortization table related to Zeroz Company's 20-year bond issue (YOU DO NOT COMPLETE THE TABLE). The bonds were issued on January 1, 2004. The bonds pay interest twice a year on July 1 and January 1. The maturity date is January 1, 2024. At the time of issuance, the company did not incur any incidental cost (assume issue costs were zero).

Payment number	Date	cash paid	interest expense	Amortization of the discount	Value in the books
Issued	1/1/2004				?
1	30/06/2004	?	?	?	?
.	.	.	.	.	.
.	.	.	.	.	.
.	.	.	.	.	.
39	06/30/2023	?	?	9,246	?
40	12/31/2023	?	39,615	9,615	1,000,000
	Totals	1,200,000	1,397,928	197,928

1. Indicate the principal of the bonds.

2. Determine the issuance price of the bonds on January 1, 2004.

3. Determine the semiannual interest rate established in the bond contract (coupon or stated interest rate).

4. Determine the book value or carrying amount of the bond that will be reported in the Balance Sheet for the period ending June 30, 2023.

5. Determine the annual interest expense to be reported on the 2023 Income Statement, assuming the company prepares financial statements annually on December 31 of each year.