On January 1, a company issues bonds:
 Par Value: $2,000,000
 Bond Term, in years: 10
 Interest Payments: 2x/year
 Stated Interest Rate: 8%
 Market Interest Rate: 6%
  How much will the bond sell for? What dollar amount will be booked to Bonds Payable on the date of sale? How much is Interest Expense on the FIRST interest payment? How much is the amortization of the Bond Premium on the FIRST interest payment? How much is the Interest Expense on the SECOND interest payment? How much is the Amortization of the Premium on the SECOND interest payment?



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