The following amortization and interest schedule reflects the purchase of 4-year, 12% bonds on June 1, 2014, and the subsequent semi-annual interest payments and charges. The companys year-end is December 31. The company has classified the Debt Investments as Available-for-sale.

Amortization Schedule
Year	Cash	Interest	Amortization	Carrying Amount
June 1, 2014				425,853
Dec 1, 2014	24,000	21,293	2,707	423,146
June 1, 2015	24,000	21,157	2,843	420,303
Dec 1, 2015	24,000	21,015	2,985	417,318
June 1, 2016	24,000	20,866	3,134	414,184
Dec 1, 2016	24,000	20,709	3,291	410,893
June 1, 2017	24,000	20,545	3,455	407,438
Dec 1, 2017	24,000	20,372	3,628	403,810
June 1, 2018	24,000	20,190	3,810	400,000

1.What is the stated rate of interest on the bonds?

2.What was the market rate at acquisition of the bonds?

3. How much interest revenue should be reported on the 2015 income statement?