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Plentiful Incorporated issues a $500,000 bond on January 1, 2016. The bond requires annual coupon payments and has a 10% stated rate. The bonds maturity

Plentiful Incorporated issues a $500,000 bond on January 1, 2016. The bond requires annual coupon payments and has a 10% stated rate. The bonds maturity date is December 31, 2020.

a. Calculate the annual coupon payment that Plentiful must make to bond investors.

b. How much cash, in total, will Plentiful pay to investors over the life of the loan?

c. How much interest expense will Plentiful recognize over the life of the loan?

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