The notes to the HelpfulHelpful Ltd. financial statements reported the following data on December 31, Year 1 (end of the fiscal year):

Helpful amortizes bond discounts using the effective-interest method and pays all interest amounts at December 31.

1.	Assume the market interest rate is 66% on January 1 of year 1, the date the bonds are issued.
	a.	Using the PV function in Excel Superscript Excel, what is the issue price of the bonds?
	b.	What is the maturity value of the bonds?
	c.	What is HelpfulHelpful's annual cash interest payment on the bonds?
	d.	What is the carrying amount of the bonds at December 31, year 1?
2.	Prepare an amortization table through December 31, Year 4 for the bonds. (Round all amounts to the nearest dollar.) How much is HelpfulHelpful's interest expense on the bonds for the year ended December 31, Year 4?
3.	Show how HelpfulHelpful would report these bonds and notes at December 31, Year 4.

Note 6. Indebtedness Bonds payable, 1% due on December 31, Year 8 ..... $5,300,000 Less: Discount Notes payable, 4%, payable in $60,000 annual installments starting in Year 5 360,000