Question: Batata inc. issues 12.50%, 10-year bonds with a par value of $470,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 9.50%, which implies a selling price of 128 7/8. The straight-line method is used to allocate interest expense.
What are the issuer's cash proceeds from issuance of these bonds? _____
What total amount of bond interest expense will be recognized over the life of these bonds?
Payments of ______
par value maturity _______
less amount borrowed ________