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. Show all work and choose from options given: 1. The interest expense that NoleCo should recognize on June 30, 2023 is: a. $40,000 b. $34,000 c. $42,500 d. $50,000 2. The interest expense that NoleCo should recognize on December 31, 2023 is: a. $40,000 b. $42,500 c. $42,625 d. $42,375 3. 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