Use the following to answer questions 4 7 (Round answers to the nearest dollar)

SLVR issues 4.0%, 10-year bonds with a total face amount of $500,000. The market interest rate for bonds of similar risk and maturity is 3.8%. Interest is paid annually. DO NOT ROUND YOUR ANSWERS UNTIL YOU FULLY COMPLETE THE PROBLEM SET (input your answers after youve completed the entire problem).

4. $___________ (rounded). What is the issue price of the bond?

5. $___________ (rounded). When the company records the first interest payment, how much will the company record for interest expense?

6. $___________ (rounded). What is the bond liability (carrying amount) after the first interest payment?

7. $___________ (rounded). When the company records the second interest payment, how much will the company record for interest expense?