Power Solutions Ltd. issues a $10,000,000, five-year, 4.5% bond with semi-annual interest payments. Underwriting costs, paid up front, are $640,000. The bond sells at par.

Required:
1. How much cash does Power receive when the bond is issued?
2. What is the effective interest rate on the bond (rounded)?
3. Prepare an amortization table using the effective interest method of amortization. Complete the first four payments only.