Santa Corporation issued a bond on January 1 of this year with a face value of $1,000. The bond's coupon rate is 5 percent and interest is paid once a year on December 31. The bond matures in three years. The annual market rate of interest was 9 percent at the time the bond was sold. The following amortization schedule pertains to the bond issued:

	Cash Paid	Interest Expense	Amortization	Balance
January 1, Year 1				$899
December 31, Year 1	$50	$81	$31	930
December 31, Year 2	50	84	34	964
December 31, Year 3	50	86	36	1,000

1) What was the bond's issue price?

2) Did the bond sell at a discount or a premium? How much was the premium or discount?

3) What amount(s) should be shown on the balance sheet for bonds payable at the end of Year 1 and Year 2?

4)Show how the following amounts were computed for Year 2: (a) $50, (b) $84, (c) $34, and (d) $964. (Enter percentages in decimals.)