Hamilton Company issued $500,000 of 6%, 10-year bonds at 98. Interest is paid semi-annually, and the straight-line method is used for amortization. Assume that the market rate for similar investments is 8%. The bonds are issued on the date of the bonds.

1. What amount was received for the bonds?

2. How much interest is paid in cash each interest period?

3. What is the discount amortization for the first interest period?

4. How much bond interest expense is recorded on the first interest date?

5. What is the carrying value of the bonds after the first interest date?