QS 14-11 (Algo) Straight-Line: Premium bond computations LO P3 Enviro Company issues 13.50%, 10-year bonds with a par value of $490,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10.50%, which implies a selling price of 129.375. The straight-line method is used to allocate interest expense. 1. What are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life of these bonds? 3. What is the amount of bond interest expense recorded on the first interest payment date? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What are the issuer's cash proceeds from issuance of these bonds? (Round your final answer to nearest whole Cash proceeds $ 633,938 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What total amount of bond interest expense will be recognized over the life of these bonds? Total Bond Interest Expense Over Life of Bonds: Amount repaid: 20 payments of $ 33,075 $ 661,500 Par value at maturity 490,000 Total repayments 1,151,500 Less amount borrowed (from part 1) 633,938 Total bond interest expense $ 517,562 Enviro Company issues 13.50%, 10-year bonds with a par value of $490,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10.50%, which implies a selling price of 129.375. The straight-line method is used to allocate interest expense. 1. What are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life of these bonds? 3. What is the amount of bond interest expense recorded on the first interest payment date? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the amount of bond interest expense recorded on the first interest payment date? (Round your final nearest whole dollar amount.) Bond interest expense $ 33,282