Use the following to answer questions $11-15$

The company issues $6\mathrm{.}0\%,20-$year bonds with a face amount of $$500,000$ for $$501,148\mathrm{.}86.$ The market interest rate for bonds of similar risk and maturity is $5\mathrm{.}98\%.$ Interest is paid annually.

$11.$ Determine the interest payment.

$12.($rounded to nearest dollar$).$ Determine interest expense for the first interest payment.

$13.$ What will happen to interest expense each interest payment? $($Increase$,$ decrease, remain constant$)$

$14.$ What will happen to the bond liability $($carrying value$)$ each interest payment? $($Increase$,$ decrease, remain constant$).$

$15.$ : $$ When the bond matures in $20$ years after all the interest payments have been made, how much will the company pay bondholders?

$16.$ $ $($rounded to nearest dollar$)$ A ten year bond issue with a face amount of $$100,000$ bears interest at the rate of $8\mathrm{.}5\%.$ The current market rate of interest is $8\mathrm{.}4\%.$ Determine the issue price of this annual bond.

$17.$ Bond $x$ and Bond $Y$ are both issued by the same company. Each of the bonds has a face value of $$100,000$ and each matures in $10$ years. Bond $x$ pays $8\%$ interest while Bond $Y$ pays $7\%$ interest. The current market rate of interest is $7\%.$ Which of the following is correct?

a$.$ Both bonds will sell for the same amount.

b$.$ Bond $x$ will sell for more than Bond $Y.$

c$.$ Bond $Y$ will sell for more than Bond $x.$

d$.$ Both bonds will sell at a premium.

$18.$ Given the information below, which bond$($s$)$ will be issued at a premium?

$\backslash$table$[[,$Bond $1,$Bond $2,$Bond $3,$Bond $4],[$Stated Rate of Return,$6\%,4\%,8\%,7\%$