Dell Co. issues bonds dated January 1, 2009, with a par value of $865,830. The bonds' annual contract rate is 11%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 10%, and the bonds are sold for $883,500.


Required:
1. What is the amount of the premium on these bonds at issuance? (Omit the "$" sign in your response.)

Premium $ 17,670

2. How much total bond interest expense will be recognized over the life of these bonds? (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)

Total bond interest expense $

3. Prepare an amortization table like the one in Exhibit 10.11 for these bonds; use the straight-line method to amortize the premium. (Make sure that the unamortized premium is adjusted to "0" in the last period. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)

Semiannual
Interest
Period-End
Unamortized Premium Carrying Value
1/01/2009 17,670 883,500
6/30/2009
12/31/2009
6/30/2010
12/31/2010
6/30/2011
12/31/2011 0 865,830

I am completely stuck on this question. If I could just figure out the total bond interest expense I might be able to do the problem.