can you please show step by step

how did you find the interest and number of periods

On March 1, year1. Catalin Corporation issued $40 million in bonds that mature in 10 years. The bonds have a stated interest rate of 5.8 percent and pay interest on March 1 and September 1. When the bonds were sold, the market rate of interest was 6 percent. Catalin uses the effective-interest method. By December 31, year 1 , the market interest rate had increased to 6.5 percent. Required: 1. Record the issuance of the bond on March 1. year I. Catalin uses a discount account. 2. Compute the present value of the difference between the interest paid each six months ($40million5.86/12=$1.16million) and the interest demanded by the market ( $40 million 6%6/12$1.2 million). Use the market rate of interest and the 10 year life of the bond in your present value computation. What does this amount represent? Explain. 3. Record the payment of interest on September 1. year 1. 4. Record the adjusting entry for acerued interest on December 31, year 1 . 5. Why does interest expense change each year when the effective-interest method is used? 6. Compute the present value of Catalin's bonds, assaming that they had a 7year life instead of a 10year life. Compare this amount to the carrying amount of the bond at March L, year 4 . What does this comparison demonstrate? 7. Determine the impact of these transactions at yearend on the debetoequity ratio and the times interest earned ratio