QS 14-9 (Algo) Straight-Line: Discount bond computations LO P2 Enviro Company issues 8%, 10-year bonds with a par value of $170,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 12. 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. 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? (Round final answer nearest whole dollar amount.) Total Bond Interest Expense Over Life of Bonds: Amount repaid: 20 payments of $ 136,000 $ 2,720,000 Par value at maturity 170,000 Total repayments 2,890,000 Less amount borrowed (from part 1) (148,750) Total bond interest expense $ 2,741,250