Please show calculations, answer ALL questions with a substantial response.

PROBLEM 3-4 Bond Accounting Cybernetics Inc. issued $60 million of590 three-year bonds, with coupon paid at the end of every year. The effective interest rate at the beginning of Years 1, 2, and 3 was 806, 500, and 2%. Required: a. Determine what Cybernetics would have raised from the bond issue. b. Assume Cybernetics decides to account for the bonds using the amortized cost method. Determine the interest CHECK (a) $55.36 million and bond amortization for each of the three years. c. Assume Cybernetics decides to account for the bonds using the fair value method. Determine the interest, un- realized gain/loss, and total expense for each of the three years. d. Explain why the amounts charged to income every year differ under the two methods