Reynolds Company issued $$87$ million face amount of $5\mathrm{.}00\%$ bonds when market interest rates were $4\mathrm{.}94\%$ for

bonds of similar risk and other characteristics.

Required:

a$.$ How much interest will be paid annually on these bonds?

Note: Enter your answer in dollars, not millions of dollars.

b$.$ Were the bonds issued at a premium or discount?

c$.$ Will the annual interest expense on these bonds be more than, equal to$,$ or less than the amount of interest paid

each year?