On January 1, 2021, a company issued 3% bonds with a face amount of $794,000. On issue date, the market rate for bonds of similar risk and maturity was 5%. The bonds were issued for $680,034. Interest is paid semiannually on June 30 and December 31. The bonds mature in 9.0 years (18 semiannual periods). (Round your final answers to the nearest whole dollar [when the rounding digit is 0.5 or above, round up; otherwise, round down].) Clues D63 C A 1 1 6 3 1 0 8 2 4 E B 1 1 3 9 6 3 3 Across: A. Calculate the periodic cash interest payment to bondholders. [Answer: $11,910; already filled in for illustration.] B. Calculate the initial balance of the discount account (on issue date). Down: C. Using the effective interest method, calculate the amount of interest expense recorded on June 30, 2021. D. Using the effective interest method, calculate amortization of the discount recorded on June 30, 2021. E. Suppose instead that the company uses the straight- line interest method. Calculate amortization of the discount recorded on June 30, 2021. 60 1