Question: Use the following to answer questions 4 - 7 (Round answers to the nearest dollar)TR issues 6.0%, 10-year bonds with a total face amount of

Use the following to answer questions 4 - 7 (Round answers to the nearest dollar)TR issues 6.0%, 10-year bonds with a total face amount of $2,000,000. The market interest rate for bonds of similar risk and maturity is 5.9%. Interest is paid semi-annually. DO NOT ROUND YOUR ANSWERS UNTIL YOU FULLY COMPLETE THE

PROBLEM SET (input your answers after you've completed the entire problem).

$___________ (rounded to nearest dollar). What is the issue price of the bond?

$___________ (rounded to nearest dollar). When the company records the first interest payment, how much will

the company record for interest expense?

$___________ (rounded to nearest dollar). What is the bond liability (carrying amount) after the first interest

payment?

7. $___________ (rounded to nearest dollar). When the company records the second interest payment, how much will

the company record for interest expense?

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