on January 2 2020 a company issues a bond with a face value of $500,000 and a coupon rate of 8% paid annually on decmeber 31. The bond matures on December 31 ,2021. on the date the bond was issued the effective interest was 6%.

Show your work for full marks

1) Is the bond being issued at a premium or discount? explain why without any calculations.

2) how much would the bond sell for when its issued on January 2,2020?

3) What Journal entry would the company record when the bond is issued on January 2,2020

4) What is the amount of interest expense recorded on decmeber 31,2020?