The Biltmore National Bank raised capital through the sale of \(\$ 150\) million face value of eight percent coupon rate, ten-year bonds. The bonds paid interest semiannually and were sold at a time when equivalent risk-rated bonds carried a yield rate of ten percent.

a. Calculate the proceeds that The Biltmore National Bank received from the sale of the eight percent bonds.

b. Calculate the interest expense on the bonds for the first year that the bonds are outstanding.

c. Calculate the book value of the bonds at the end of the first year.