QS 10-8 StraightLine: Bond computations LO P3 Enviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 5%, which Implies a selling price of 123 The straight-line method is used to allocate interest expense 1. Using the Impliled sellilng price of 123 %, what are the Issuer's cash proceeds from Issuance of these bonds? 5 308,438 2. What total amount of bond Interest expense will be recognized over the lfe of these bonds? Total Bond Interest Expense Over Life of Bonds Amount repaid ,250 5 125,000 Par value at maturity Total repayments Less amount borrowed (from part 1) 125,000 5 125,000 3. What is the amount of bond Interest expense recorded on the first Interest payment date? interest expense