R. J. Winter co. recently issued $100,000, 10-year deferred interest bonds. The bonds have a stated rate of 10%, and interest is to be paid in 10 semiannual payments beginning in Year 6. The Market rate of interest on the date of issuance was 8%.

1) Compute the maximum amount an investor should pay for these bonds. (Note: Round to the nearest dollar.)

2) Prepare a bond amortization schedule for R.J. Winter, assuming the effective-interest method is used. (Note: Round to the nearest dollar.)