Jones Company is planning to issue $490,000 of 9%, five-year bonds payablo to bonow for a major expansion. The oxnet, Shane Jones, asks your advice on some related matiers. Read the tequirements. Requirement 1. Answer the tollowing questions. At what type of bond price will Jones Compary have total interest expense equal to the cash interest a. payments? Requirements 1. Answer the following questions: a. At what type of bond price will Jones Company have total interest expense equal to the cash interest paymeits? b. Under which type of bond price will Jones Company's total interest expense be greater than the cash interest payments? c. If the market interest rate is 12%, what type of bond price can Jones Company expect for the bonds? 2. Compute the price of the bonds if the bonds are issued at 89 . 3. How much will Jones Company pay in interest each year? How much will Jones Company's interest expense be for the first year? (Assume the straight-line method is used.)