PLEASE HELP ME WITH THIS I APPRECIATE YOU

The company issues 7% 5-year bonds with a total face amount of

$1,000,000 with interest paid semi-annually. The market rate of

interest is 7.2%.

n

%

PV

PVA

5

7.00%

0.71299

4.1002

5

7.20%

0.70636

4.0783

10

3.50%

0.70892

8.3166

10

3.60%

0.70211

8.2748

ROUND ANSWERS TO NEAREST DOLLAR

1. What is the issue price of the bond? $_______

2. Record the issuance of the bond:

3. What is the interest expense for the first interest payment? $_____

4. What is the bond liability after the first interest payment? $_______

5. What is the interest expense for the second interest payment? $___