The Newt Deli, issued $600,000 of 20-year, 4 percent bonds on January 1, 2025, at 96.5. Interest is payable in cash semiannually on June 30 and December 31. The straight-line method is used for amortization.

Required:

a. Calculate the cash proceeds from the bond issue.

b. Did Newt issue these bonds at a discount or a premium?

c. What is the amount of the discount or premium?

d. What is the amount of annual discount or premium amortization?

e. What is Newt's cash payment on the bonds on June 30, 2025?

f. What is Newt's interest expense for the year 2025?