Cron Corporation is planning to issue bonds with a face value of $830,000 and a coupon rate of 13 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Cron uses the effective-interest amortization method. Assume an annual market rate of interest of 12 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1)

1. What was the issue price on January 1 of this year?

2. What amount of interest expense should be recorded on June 30 and December 31 of this year? Give a number for both dates.

3. What amount of cash should be paid to investors June 30 and December 31 of this year? Give a number for both dates.

4. What is the book value of the bonds on June 30 and December 31 of this year? Give a number for both dates.