Castlegar Manufacturing Inc. has outstanding $ $280$ comma $000$$$280,000$ of $1515\%$ debenture bonds. The bonds were issued at $107107$ in $20$ XX$20$XX and mature in $20$ years.

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Part $1$

Requirement $1.$ How much cash did CastlegarCastlegar receive when it issued these$$ bonds?

How much cash did Castlegar receive when it issued these bonds?

Part $2$

Requirement $2.$ How much cash in total will CastlegarCastlegar pay the bondholders through the maturity date of the$$ bonds?

How much cash in total will Castlegar pay the bondholders through the maturity date of the bonds?

Part $3$

Requirement $3.$ Take the difference between your answers to requirements $1$ and $2.$ This difference represents CastlegarCastlegar$\text{'}$s total interest expense over the life of the bonds.

What is the difference between your answers to requirements $1$ and $2?$

Part $4$

Requirement $4.$ Compute CastlegarCastlegar$\text{'}$s annual interest expense by the$$ straight$-$line amortization method. Multiply this amount by $20.$ Your$20-$year total should be the same as your answer to requirement $3.$

Part $5$

What is Castlegar's annual interest expense by the straight$-$line amortization method?

What is this amount multiplied by $20?$