Dickens Company is planning to issue $490,000 of 12%, five-year bonds payable to borrow for a major expansion. The owner, John Dickens, asks your advice on some related matters. Read the requirements. Requirements a. 1. Answer the following questions: At what type of bond price will Dickens Company have total interest expense equal to the cash interest payments? b. Under which type of bond price will Dickens Company's total interest expense be greater than the cash interest payments? If the market interest rate is 13%, what type of bond price can Dickens Company expect for the bonds? 2. Compute the price of the bonds if the bonds are issued at 88. 3. How much will Dickens Company pay in interest each year? How much will Dickens Company's C. a. At what type of bond price will Dickens Company have total interest expense equal to the cash interest payments? b. Under which type of bond price will Dickens Company's total interest expense be greater than the cash interest payments? c. If the market interest rate is 13%, what type of bond price can Dickens Company expect for the bonds? w 2. Compute the price of the bonds if the bonds are issued at 88. 3. How much will Dickens Company pay in interest each year? How much will Dickens Company's interest expense be for the first year? (Assume the straight-line method is used.) Print Done