Pool Corporation, Incorporated, sells swimming pool supplies and equipment. It is a publicly traded corporation that trades on the NASDAQ exchange. The majority of Pool's customers are small, family-owned businesses. Assume that Pool issued bonds with a face value of $800,000,000 on January 1 of this year and that the coupon rate is 6 percent. At the time of the borrowing, the annual market rate of interest was 2 percent. The debt matures in 9 years, and Pool makes interest payments semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.)

1. What was the issue price on January 1 of this year?

Issued Price:

2. What amount of interest expense should be recorded on June 30 and December 31 of this year?

June 30 Interest Expense:

December 31 Interest Expense:

3. What is the book value of the bonds on June 30 and December 31 of this year?

June 30 Bonds Payable:

December 31 Bonds Payable: