Devon Harris Company sells10% bonds having a maturity value of $2,000,000for $1,855,816. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1.

1. Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18%.)
2. Set up a schedule of interest expense and discount amortization under the effective-interest method.(Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.)