Compute Bond Proceeds, Amortizing Premium by Interest Method, and Interest Expense Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware Co. issued $80,000,000 of four-year, 12% bonds at a market (effective) interest rate of 10%, with interest payable semiannually. Compute the following: a. The amount of cash proceeds from the sale of the bonds. Use the tables of present values in Exhibit 8 and Exhibit 10 . Round to the nearest dollar. $ b. The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round to the nearest dollar. \$ c. The amount of premium to be amortized for the second semiannual interest payment period, using the interest method. Round to the nearest dollar. $ d. The amount of the bond interest expense for the first year. Round to the nearest dollar. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|} \hline Periods & 4% & 4121% & 5% & 51/2% & 6% & 621% & 7% & 10% & 11% & 12% & 13% \\ \hline 1 & 0.96154 & 0.95694 & 0.95238 & 0.94787 & 0.94340 & 0.93897 & 0.93458 & 0.90909 & 0.90090 & 0.89286 & 0.88496 \\ \hline 2 & 1.88609 & 1.87267 & 1.85941 & 1.84632 & 1.83339 & 1.82063 & 1.80802 & 1.73554 & 1.71252 & 1.69005 & 1.66810 \\ \hline 3 & 2.77509 & 2.74896 & 2.72325 & 2.69793 & 2.67301 & 2.64848 & 2.62432 & 2.48685 & 2.44371 & 2.40183 & 2.36115 \\ \hline 4 & 3.62990 & 3.58753 & 3.54595 & 3.50515 & 3.46511 & 3.42580 & 3.38721 & 3.16987 & 3.10245 & 3.03735 & 2.97447 \\ \hline 5 & 4.45182 & 4.38998 & 4.32948 & 4.27028 & 4.21236 & 4.15568 & 4.10020 & 3.79079 & 3.69590 & 3.60478 & 3.51723 \\ \hline 6 & 5.24214 & 5.15787 & 5.07569 & 4.99553 & 4.91732 & 4.84101 & 4.76654 & 4.35526 & 4.23054 & 4.11141 & 3.99755 \\ \hline 7 & 6.00205 & 5.89270 & 5.78637 & 5.68297 & 5.58238 & 5.48452 & 5.38929 & 4.86842 & 4.71220 & 4.56376 & 4.42261 \\ \hline 8 & 6.73274 & 6.59589 & 6.46321 & 6.33457 & 6.20979 & 6.08875 & 5.97130 & 5.33493 & 5.14612 & 4.96764 & 4.79677 \\ \hline 9 & 7.43533 & 7.26879 & 7.10782 & 6.95220 & 6.80169 & 6.65610 & 6.51523 & 5.75902 & 5.53705 & 5.32825 & 5.13166 \\ \hline 10 & 8.11090 & 7.91272 & 7.72173 & 7.53763 & 7.36009 & 7.18883 & 7.02358 & 6.14457 & 5.88923 & 5.65022 & 5.42624 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{10}{|c|}{ Present Value of $1 at Compound Interest } & \multicolumn{2}{|c|}{ EXHIBIT 8} \\ \hline Periods & 4% & 421% & 5% & 5121% & 6% & 61/2% & 7% & 10% & 11% & 12% & 13% \\ \hline 1 & 0.96154 & 0.95694 & 0.95238 & 0.94787 & 0.94340 & 0.93897 & 0.93458 & 0.90909 & 0.90090 & 0.89286 & 0.88496 \\ \hline 2 & 0.92456 & 0.91573 & 0.90703 & 0.89845 & 0.89000 & 0.88166 & 0.87344 & 0.82645 & 0.81162 & 0.79719 & 0.78315 \\ \hline 3 & 0.88900 & 0.87630 & 0.86384 & 0.85161 & 0.83962 & 0.82785 & 0.81630 & 0.75131 & 0.73119 & 0.71178 & 0.69305 \\ \hline 4 & 0.85480 & 0.83856 & 0.82270 & 0.80722 & 0.79209 & 0.77732 & 0.76290 & 0.68301 & 0.65873 & 0.63552 & 0.61332 \\ \hline 5 & 0.82193 & 0.80245 & 0.78353 & 0.76513 & 0.74726 & 0.72988 & 0.71299 & 0.62092 & 0.59345 & 0.56743 & 0.54276 \\ \hline 6 & 0.79031 & 0.76790 & 0.74622 & 0.72525 & 0.70496 & 0.68533 & 0.66634 & 0.56447 & 0.53464 & 0.50663 & 0.48032 \\ \hline 7 & 0.75992 & 0.73483 & 0.71068 & 0.68744 & 0.66506 & 0.64351 & 0.62275 & 0.51316 & 0.48166 & 0.45235 & 0.42506 \\ \hline 8 & 0.73069 & 0.70319 & 0.67684 & 0.65160 & 0.62741 & 0.60423 & 0.58201 & 0.46651 & 0.43393 & 0.40388 & 0.37616 \\ \hline 9 & 0.70259 & 0.67290 & 0.64461 & 0.61763 & 0.59190 & 0.56735 & 0.54393 & 0.42410 & 0.39092 & 0.36061 & 0.33288 \\ \hline 10 & 0.67556 & 0.64393 & 0.61391 & 0.58543 & 0.55839 & 0.53273 & 0.50835 & 0.38554 & 0.35218 & 0.32197 & 0.29459 \\ \hline \end{tabular}