Sunset Drive-Ins Ltd. borrowed money by issuing $5,000,000 of 3% bonds payable at 36.5 on July 1, 2010. The bonds are 10-year bonds and pay interest each January 1 and July 1.

1. How much cash did Sunset receive when it issued the bonds payable?

2. How much must Sunset pay back at maturity? When is the maturity date?

3. How much cash interest will Sunset pay each six months?

4. How much interest expense will Sunset report each six months? Assume the straight-line amortization method.