InterTech Corporation needed financing to build a new manufacturing plant. On June 30^th of 2021 InterTech issued $2,175,000 bonds with a 6% coupon rate (payments due on December 31^st and June 30^th). The bonds were sold for $1,921,500 with an effective interest rate of 8%.

On July 1^st, 2022, InterTech bought back all the bonds for $2,000,000.

1. What is the amount of interest payment on December 31^st of 2021?
2. What is the amount of interest expense associated with these bonds for 2021?
3. How much was InterTechs reported gain or loss from the bond repurchase? Please use positive numbers for gain, and negative numbers for loss.
4. Which one of the followings best describes the effective interest rate on July 1^st, 2022.
   1. Equals 8%
   2. Less than 8%
   3. More than 8%