Red Corporation issued $8 million of 20 -year, 8% bonds on July 1 , year 1 , at 98 . Interest is paid on June 30 and December 31 of each year, and all of the bonds mature on June 30 , year 20 . Was this bond issued at a premium, a discount, or at face value? Impossible to determine from the information given. Face value Premium Discount Red Corporation issued $8 million of 20 -year, 8% bonds on July 1 , year 1 , at 98 . Interest is paid on June 30 and December 31 of each year, and all of the bonds mature on June 30 , year 20 . How much will Red pay as interest on December 31, year 1 ? $320,000 $324,000 $160,000 $316,000