Question: Enviro Company issues 8%, 10-year bonds with a par value of $160,000 and semiannual interest payments. On the issue date, the annual market rate for

Enviro Company issues 8%, 10-year bonds with a par value of $160,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 12. The straight-line method is used to allocate interest expense.

1. Using the implied selling price of 87 , what are the issuer's cash proceeds from issuance of these bonds?

2. What total amount of bond interest expense will be recognized over the life of these bonds?

a. Amount repaid ? b. payment of $? c. Par value at maturity? d. less amount borrowed?

I got 14,000,000 for number 1. and payment of $6400 for number 2 part b. (Can you please help and provide how you solved this)

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