On January $1,2025,$ Pepper Co$.$ issued tert$-$year borids with a face value of $$5,000,000$ and a stated intorest mate of $10\%,$ payable semiantugly on lune $30$ and December $31.$ The bonds were sold' to yield $12\%.$ Table values are:

$\backslash$table$[[,],[$Present value of $1$ for $10$ periods at $10\%,],[$Present value of $1$ for $10$ periods at $12\%,\mathrm{.}38554],[$Present value of $1$ for $20$ periods at $5\%,\mathrm{.}32197],[$Present value of $1$ for $20$ periods at $6\%,\mathrm{.}37689],[$Present value of annuity for $10$ periods at $10\%,6\mathrm{.}14457],[$Present value of annuity for $10$ periods at $12\%,5\mathrm{.}65022],[$Present value of annuity for $20$ periods at $5\%,12\mathrm{.}46221],[$Present value of annuity for $20$ periods at $6\%,11\mathrm{.}46992]]$

Instructions

$($a$)$ Calculate the issue price of the bonds $($Hint: Issuing price $=PV$ of principal and PV of annuity.

$($b$)$ Prepare the amortization table for $2025,$ assuming that amortization is recorded on interest payment dates using the effective$-$interest method. Specify Date, Interest Expense, Cash Interest, Amortization Amount and Carrying Amout.