A bond due in ten years with face value of $1,000 and face rate of interest of 8% is issued when the market rate of interest is 6%. Required 1. What is the issue price of the bond? 2. What is the...

A bond due in ten years with face value of $1,000 and face rate of interest of 8% is issued when the market rate of interest is 6%.

Required

1. What is the issue price of the bond?

2. What is the amount of premium or discount on the bond at the time of issuance?

3. What amount of interest expense will be shown on the income statement for the first year of the bond?

4. What amount of the premium or discount will be amortized during the first year of the bond?