On January 1, 2021, $970,000, 5-year 5% bonds were issued for $928,625. The interest rate in effect when the bonds were issued was 6%. Interest is paid semi-annually on January 1 and July 1.

1.How much interest is paid at each interest payment date? (1 mark)

2.What is recorded as interest expense for the payment on July 1, 2021? (1 mark)

3.What is the amortized cost of the bonds on January 1, 2022 after the payment on that date? (3 marks)

Question 2 (5 marks) On January 1, 2021, $970,000, 5-year 5% bonds were issued for $928,625. The interest rate in effect when the bonds were issued was 6%. Interest is paid semi-annually on January 1 and July 1. 1. How much interest is paid at each interest payment date? (1 mark} 2. What is recorded as interest expense for the payment on July 1, 2021? (1 mark) 3. What is the amortized cost of the bonds on January 1, 2022 after the payment on that date