On January 1, 2020, the Dyer Group issued $5,000,000 of 11% bonds, dated January 1. Interest is payable semiannually on June 30th and December 31. The bonds mature in 5 years. Market yield for bonds of similar risk is 10%.

1. Determine the price of this bond issue to yield 10% market rate and, record the issuance of the bond.

2. Prepare the amortization schedule that determines the interest at the effective rate and record interest on the first interest date June 30th, 2020.