On January 1 of this year, Trucks R Us Corporation issued bonds with a face value of $2,000,000 and a coupon rate of 10 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. When the bonds were sold, the annual market rate of interest was 10 percent. Required: 1. What was the issue price on January 1 of this year? 2. What amount of interest expense should be recorded on June 30 and December 31 of this year? 3. What amount of cash interest should be paid on June 30 and December 31 of this year? 4. What is the book value of the bonds on December 31 of this year? December 31 of next year