(Issuance and Retirement of Bonds) Venzuela Co. is building a new hockey arena at a cost of $2,500,000.

(Issuance and Retirement of Bonds) Venzuela Co. is building a new hockey arena at a cost of $2,500,000. It received a downpayment of $500,000 from local businesses to support the project, and now needs to borrow $2,000,000 to complete the project. It therefore decides to issue $2,000,000 of 10.5%, 10-year bonds. These bonds were issued on January 1, 2009, and pay interest annually on each January 1. The bonds yield 10%. Venzuela paid $50,000 in bond issue costs related to the bond sale.Instructions