NoleCo issues bonds on January $1,2023.$ These bonds pay interest semi$-$annually on June $30$and December $31$each year. The face value of the bonds is $$1,000,000$and the coupon$/$stated rate is $8\%.$The market rate on the issue date is $10\%.$The bonds were issued for $$850,000.$

$$The interest expense that NoleCo should recognize on June $30,2023$is:

a$)$ $$40,000$

b$)$ $$34,000$

c$)$ $$42,500$

d$)$ $$50,000$

The carrying value of these bonds on December $31,2023($after the interest payment on that date$)$is:

a$)$ $$1,000,000$

b$)$ $$850,000$

c$)$ $$855,000$

d$)$ $$855,125$

e$)$ $$844,875$

The interest expense that NoleCo should recognize on December $31,2023$is:

a$)$ $$40,000$

b$)$ $$42,500$

c$)$ $$42,625$

d$)$ $$42,375$