Hopkins Company is planining to issue $10,000 of 9%, ten-year bonds payable to borrow for a major expansion. The owner, Doug Hopkins, asks yoir advice on some related matters. Read the 4. Laxn neicerpayineans: If the makket interest rate is 1196 , what type of bond price can Hopkns Company expect for the c. bonds? Requirement 2. Compute the price of the bonds if the bonds are issued at 87. The proce of the 5510,000 bond issued at 87 is Requirement 3. How much wit Hopkins Compainy pay in interest each year? How much will Hopkins Company's interest expense be for the first year? (For his scenario we are assuming that the $10,000 bonds are issued at 87 . Further assume that the straight-line method is used.) If the $510,000 bonds are issued at 87 , Hopkins Company will pay this amount of interest each year Round your answers to the nearest whote 'dottain) Assuming that the straight-line method is used, Hopkins Company's interest expense for the first year will be 1. Answer the following questions: a. At what type of bond price will Hopkins Company have total interest expense equal to the cash interest payments? b. Under which type of bond price will Hopkins Company's total interest expense be greater than the cash interest payments? c. If the market interest rate is 11%, what type of bond price can Hopkins Company expect for the bonds? 2. Compute the price of the bonds if the bonds are issued at 87 . 3. How much will Hopkins Company pay in interest each year? How much will Hopkins Company's interest expense be for the first year? (Assume the straight-line method is used.) Hopkins Compary is planning to issue $510,000 of 9%, tenyear bonds payabie to borrow for a major expansion, The owner, Doug Hopkins, asks your advice on some relaled matters. Read the Requirement 1. Answer the following questions. At what type of bond price will Hopkins Compury have total interest expense equal to the cash a. interest payments? Under which type of bxind price will Hopkins Company's tocal interest expense be greater than the b. cash interest payments? If the market interest rate is 11%, what typo of bond poce can Hopkins Company fexpect for the c. bonds? Requirement 2 Compute the price of the bonds if the bonds are issued at 87. The price of the $510,000 bond issued at 87 is