Tano issues bonds with a par value of $99,000 on January 1, 2015. The bonds annual contract rate is 6%, 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 8%, and the bonds are sold for $93,809.

1. What is the amount of the discount on these bonds at issuance? Discount 5,19 2. How much total bond interest expense will be recognized over the life of these bonds? Total bond interest expense over life of bonds. Amount repaid: S 6 payments of 17,820 2,970 99,000 Par value at maturity Total repaid 116,820 Less amount borrowed 93,809 23,011 Total bond interest expense 3. Prepare an amortization table using the straight-line method to amortize the discount for these bonds. (Round your intermediate calculations to the nearest dollar amount.) Carrying Semiannual Period Unamortized End Discount Value 5,191 s 01/01/2015 93,809 4,326 92,944 06/30/2015 12/31/2015 4,326 92,079 4,326 91,214 06/30/2016 4,326 12/31/2016 90,348 7,786 91,214 06/30/2017