James Company is planning to issue $460,000 of 10%, ten-year bonds payable to borrow for a major expansion. The owner, Frederick James, asks your advice on some related matters Read the requirements Requirement 1. Answer the following questions. At what type of bond price will James Company have total interest expense equal to the cash a. interest payments? 1. Answer the following questions: a. b. C. At what type of bond price will James Company have total interest expense equal to the cash interest payments? Under which type of bond price will James Company's total interest expense be greater than the cash interest payments? If the market interest rate is 13%, what type of bond price can James Company expect for the bonds? 2. Compute the price of the bonds if the bonds are issued at 87. 3. How much will James Company pay in interest each year? How much will James Company's interest expense be for the first year? (Assume the straight-line method is used.)