The following information is used to answer questions.

Bonds: $3,000,000 Par Value

Semiannual Interest Payments

Three-Year Life

Annual Contract Rate: 12%

Annual Market Rate: 10%

9.What is the price of the bond?

A. $3,152,270.76

B. $3,187,305.54

C. $3,215,852.37

D. $3,330,744.36

10.What is the amount of the bond premium?

A. $330,744.36

B. $187,305.54

C. $152,270.76

D. $215,852.37

11 What is the semi-annual cash payment to the bondholder?

A. $150,000

B. $160,000

C. $170,000

D. $180,000

12 What is the total amount of interest expense over the life of the bond?

A. $927,729.24

B. $945,756.32

C. $955,798.51

D. $963,877.98