Sammys Incorporated issued 12 year bonds on January 1, 2015. The bonds had a face value of $1000, and paid a coupon of 7 percent. On the date the bonds were issued, the market rate was 5 percent.

How much money did Sammy receive from selling the bonds (in other words, what was the price of the bonds) ? Show your work.

What would be Sammys interest expense for each of the first 3 years, 2015-2017. Clearly Label your answers or Circle your THREE answers. To get credit, you MUST show your work.