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Al issues 4.0%, 20-year bonds with a face amount of $1,000,000 for $986,529.23. The market interest rate for bonds of similar risk and maturity is 4.1%. Interest is paid annually. 11. 5 Determine the interest payment. 12.5 (rounded to nearest dollar). Determine interest expense for the first interest payment. 13. What will happen to interest expense each Interest payment? (Increase, decrease, remain constant) 14. What will happen to the bond llability (carrying value) each interest payment? (Increase, decrease, remain constant) 15. 5_ __How much will the company pay out when the bonds mature In 20 years (331ume all interest payments have already been paid)? 16. S__________ (rounded to nearest dollar) A ten year bond issue with a face amount of $100,000 beste interest at the rate of 5.0%. The current market rate of interest i: 4,90%. Determine the issue price of this annual band, 17. Bond Xand Bond Y are both issued by the same company. Esch of the band has a face value of $100,000 and each matures in 10 years. Bond X pays 8% interest while Band Y pays 7% interest. The current market rate of interestis 7%. Which of the following is correct? 2. Both bonds will sell for the same amount. b. Bond I will sell for more than Bond Y. c. Bond Y will sell for more than Bond X. d. Both bonds will sell at a premium. 18. Given the information below, which bond(s) will be issued at a discount? Bond 598 Stated Rate of Return Market Rate of Return Bond 2 778 Bonds 1296 129 Bond 4 1096 19. % BD Company issues 5%, 10-year bonds with a face amount of $1,000,000 on January 1, 20A for $1,000,000. Interest is paid semiannually on June 30 and December 31. What was the market interest rate for the bond issuance?