Tano Company issues bonds with a par value of $87,000 on January 1, 2021. The bonds' annual contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 10%, and the bonds are sold for $80,375. 1. What is the amount of the discount on these bonds at issuance? 2. How much total bond interest expense will be 3. Prepare a straight-line amortization table for these bonds.