Los Suppose Finance King (FK) buys $1,300,000 of CocoCorp bonds at a price of 106 The CocoCorp bonds pay cash interest at the annual rate of 3% and mature at the end of five years Required 1. How much did FK pay to purchase the bond investment? How much will FK collect when the bond investment matures? 2 How much cash interest will FK receive each year from CocoCorp? 3. Will FK's annual interest revenue on the bond investment be more or less than the amount of cash interest received each year? Give your reason 4. Compute FK's first-year interest revenue on this bond investment Use the effective interest of 2.75% to amortize the investment. Requirement 1. How much did FK pay to purchase the bond investment? FK paid $ to purchase the bond How much will FK collect when the bond investment matures? FK will collect at maturity Requirement 2. How much cash interest will FK receive each year from CocoCorp? FK will receive annual cash interest of $ Requirement 3. Will FK's annual interest revenue on the bond investment be more or less than the amount of cash interest received each year? Why? creates in 7. The difference between the purchase price paid and the face amount collected the cash interest received each year because the investor bought the bonds at a Annual interest revenue will be interest revenue over the life of the bonds. Requirement 4. Compute FK's first-year interest revenue on this bond investment Use the effective interest of 2.75% to amortize the investment FK will recognize first-year interest revenue of on the bond investment