If a company decided to issue a bond to raise cash for the construction of the new DC, what would be the amount of proceeds received by the company if on January 1, 2017 the company issues $12, 775,000 in 9% coupon bonds due December 31, 2021 with semiannual interest payments due July 1 and December 31 each year? Assume the market rate is 5% for companies with risk profiles similar to the company. Utilize the present value (PV) function within Excel to calculate the proceeds. What amount of interest expense will be recognized each year (for this answer, assume that no interest capitalization occurs) of the bond and what is the total amount of interest expense over the life of this bond? Utilize formulas within Excel to prepare an effective interest method amortization schedule for the life of the bond. In regards to this bond, what is the 'fair value option' and can it be used by the company? What is the Codification reference(s) that supports your