Requirements a. 1. Answer the following questions: At what type of bond price will Adams Company have total interest expense equal to the cash interest payments? b. Under which type of bond price will Adams Company's total interest expense be greater than the cash interest payments? If the market interest rate is 15%, what type of bond price can Adams Company expect for the bonds? 2. Compute the price of the bonds if the bonds are issued at 93. 3. How much will Adams Company pay in interest each year? How much will Adams Company's interest expense be for the first year? (Assume the straight-line method is used.) C. Print Done Adams Company is planning to issue $450,000 of 12%, five-year bonds payable to borrow for a major expansion. The owner, Franky Adams, asks your advice on some related matters. Read the requirement Requirement 1. Answer the following questions. At what type of bond price will Adams Company have total interest expense equal to the cash a interest payments? Under which type of bond price will Adams Company's total interest expense be greater than the b. cash interest payments? Face value Discount price If the market interest rate is 15%, what type of bond price can Adarris Company expect for the c. bonds? Discount price Requirement 2. Compute the price of the bonds if the bonds are issued at 93. The price of the $450,000 bond issued at 93 is Requirement 3. How much will Adams Company pay in interest each year? How much will Adarns Company's interest expense be for the first year? (For this scenario we are assuming that the $450,000 bonds are issued at 93. Further assume that the straight-line method is used.) If the $450,000 bonds are issued at 93, Adams Company will pay this amount of interest each year (Round your answers to the nearest whole dollar.) Assuming that the straight-line method is used, Adams Company's interest expense for the first year will be