Borthick Basketball Company is going to expand its manufacturing operations and plans to borrow some of the funds necessary for the expansion. Borthick wants to issue a 10-year, 9 percent, $600,000 note that pays interest semiannually but is concerned about the impact of the note. Assume the market interest rate is 8 percent.

Required:

A. What are the cash inflows from the note?
B. What are the cash outflows associated with the note each year?
C. What is the interest expense for the first year of the note?
D. How does the carrying value of the note change over the life of the note?