The Biltmore National Bank raised capital through the sale of $10 million face value of 8% coupon rate, 10-year bonds.

How will the bonds be disclosed on Biltmore's balance sheet immediately following the sale? Round your answers to the nearest dollar.

Balance sheet disclosure (following sale):

Bonds payable10,000,000Less: Bonds discount (enter as negative)AnswerBonds payable(net)Answer

Calculate the interest expense on the bonds for the first year that the bonds are outstanding. Do not round until final answer. Round answers to the nearest dollar.

First six monthsAnswerSecond six monthsAnswer

Calculate the book value of the bonds at the end of the first year. Do not round until final answer. Round answer to the nearest dollar.

$Answer