Texxon Corporation issued $200,000 of 10-year bonds with a payment rate of 6%; payments are made semiannually. Assume that the market interest rate for similar investments is 4%, compounded semiannually. Please show your work below to receive credit.

1. What is the semi-annual cash payment amount for this bond issue?

2. What is the present value (issue price) of this bond issue at the market rate of interest?

3. How much bond interest expense should be recorded on the first semi-annual interest payment date?

4. These bonds would be issued at a premium (i.e., your answer to #2 should be more than $200,000). What amount of premium will be amortized on the first semi-annual interest payment date?