Use the following to answer questions 4 - 7 (Round answers to the nearest dollar)TR issues 6.0%, 10-year bonds with a total face amount of $2,000,000. The market interest rate for bonds of similar risk and maturity is 5.9%. Interest is paid semi-annually. DO NOT ROUND YOUR ANSWERS UNTIL YOU FULLY COMPLETE THE

PROBLEM SET (input your answers after you've completed the entire problem).

4.

$___________ (rounded to nearest dollar). What is the issue price of the bond?

5.

$___________ (rounded to nearest dollar). When the company records the first interest payment, how much will

the company record for interest expense?

6.

$___________ (rounded to nearest dollar). What is the bond liability (carrying amount) after the first interest

payment?

7. $___________ (rounded to nearest dollar). When the company records the second interest payment, how much will

the company record for interest expense?