Answer:
The interest rate of the bond issued it's 6%, so the company always pays the same amount of interest, $300,000 (3%) each period because it's semiannually, total year of $600,000.
Explanation:
The difference lies on the rate interest accepted by the market, the information indicates that the market requires a higher interest rate to lend the money to the company at this moment.
It the moment of the bond issued the company register:
Debit $8,640,967 Cash
Debit $1,359,033 Discount on Bonds Payable
Credit $10,000,000 Bonds Payable
At the moment of record the first interest payment
Debit $345,639 Bond Interest Expense
Credit $45,639 Discount on Bond Payable
Credit $300,000 Cash
At the moment of record the second interest payment
Debit $347,464 Bond Interest Expense
Credit $47,464 Discount on Bond Payable
Credit $300,000 Cash
