County Bank has $$500,000$ of $8\%$ debenture bonds outstanding. The bonds were issued at $103$ in $2021$ and mature in $2041.$ The bonds have annual interest payments.

Read the requirements.

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

At the time the bonds were issued, County Bank received cash of

Requirements

How much cash did County Bank receive when it issued these bonds?

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

Calculate the difference between your answers to requirements $1$ and $2.$ This difference represents County Bank's total interest expense over the life of the bonds.

Compute County Bank's annual interest expense using the straight$-$line amortization method. Multiply this amount by $20.$ Your $20-$year total should be the same as your answer to requirement $3.$