Quatro Company issues bonds dated January $1,2026,$ with a par value of $$870,000.$ The bonds$$ annual contract rate is $9\%,$ and interest is paid semiannually on June $30$ and December $31.$ The bonds mature in three years. The annual market rate at the date of issuance is $8\%,$ and the bonds are sold for $$892,789.$

What is the amount of the premium on these bonds at issuance?

How much total bond interest expense will be recognized over the life of these bonds?

Total Bond Interest Expense Over the Life of the Bonds:

Amount repaid:

payments of

Par value at maturity

Total repaid

Less amount borrowed

Total bond interest expense

Prepare an effective interest amortization table for these bonds.

Note: Round all amounts to the nearest whole dollar.

Semiannual Interest Period$-$End Cash Interest Paid Bond Interest Expense Premium Amortization Unamortized Premium Carrying Value

$01/01/2026$

$06/30/2026$

$12/31/2026$

$06/30/2027$

$12/31/2027$

$06/30/2028$

$12/31/2028$

Total