Your Company issued bonds with a par value of $1,000,000 at 97 on January 1, Year 1. The bonds had a stated interest rate of 4% with a 20 year term. Interest is paid annually on December 31. At the time the bonds were issued the market rate was 5%.

How much interest expense would Your Company record on each payment date?

Your Company issued bonds with a par value of $1,000,000 at 101 on January 1, Year 1. The bonds had a stated interest rate of 5% with a 20 year term. Interest is paid annually on December 31. At the time the bonds were issued the market rate was 4%.

How much interest expense would Your Company record on each payment date?