Enviro Company issues 14.00%, 10-year bonds with a par value of $500,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 11.00%, which implies a selling price of 129.625. The straight-line method is used to allocate interest expense.

Required:
a. Using the implied selling price of 129 5/8. what are the issuer's cash proceeds from issuance of these bonds?
b. Whet total amount of bond interest expense will be recognized over the life of these bonds?