Effect on Cash Flows $1.$ A bond with a face value of $$1,000,000$ is issued for $$960,000\mathrm{.}2.$ At year$-$end, $$45,000$ accrued interest payable is recorded and $$1,000$ of the bond discount is amortized$\mathrm{.}3.$ Early in the second year, the accrued interest recorded in requirement $(2)$ is paid$\mathrm{.}4.$ The debt matures at the end of the fifth year.