Power Solutions Ltd. issues a $19,500,000, five-year, 4.5% bond with semi-annual interest payments. Underwriting costs, paid up front, are $1,248,000. The bond sells at par.

Required:

1. How much cash does Power receive when the bond is issued?

2. What is the effective interest rate on the bond?(Round your answer to the nearest whole percentage.)

3. Prepare n amortization table using the effective-interest method of amortization. Complete the first four paymentsonly.(Round your effective interest rate to the nearest whole percentage and your final answers to the nearest whole dollar.)