Danish Company issued bonds with a face value of $500,000 on January 1, 2017. The bonds, which mature in five years, have a coupon rate of 3.7 percent. Interest is paid semiannually on June 30th and December 31st, with the first payment due on June 30, 2017. The bonds were sold on January 1, 2017 at 96.

What is the (annual) yield rate on the bonds? _____________ How much interest did Danish pay for the year ending December 31, 2019? How do the bonds appear on the balance sheet on December 31, 2019? _______________________