Given the Following Information Answer the Questions Below

1. January 1^st Our Business Issued 500 Bonds at 102%.
2. Each Bond had a Face Value of $2,000.
3. The Face Rate of Interest is 8%.
4. Interest is Payable Annually on December 31st.
5. The Maturity Date is 10 years from Now.

a) Compute the Total Cash Proceeds Received when the Bonds were Issued.

b) Is the Market Rate of Interest the Same, Higher, or Lower than 8%, on the Day The Bonds were issued?

c) Compute the Amount Shown as Bonds Payable on the Balance Sheet at the end of Year One

d) Compute the Amount of Total Interest Paid Annually(each Year).

e) Compute the Amount Shown as Bonds Payable at the End of Year 5.