On January 1, 2018, Splash City issues $470,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $516,513.

1).Compute carrying value on June 30, 2018.

Hint:

Cash paid = Face amount 4.5% Stated rate

Interest expense = Carrying value 4.0% Market rate

(Round interest expense to the nearest whole number)

Decrease in carrying value = Cash paid Interest expense

Carrying value = Prior carrying value Decrease in carrying value

2). Compute carrying value on December 31, 2018.

need help solving this, thanks