Consider the "Tale of Two Types" from the section notes. If the market structure was perfect competition (instead of monopoly as we discussed in section) and information is symmetric, what interest rates would be offered to Risky and Safe types? (Hint: you may need to do some quick calcuations.)

At the beginning of 2014, winston corporation issued 10% bonds with a face value of $2,000,000. these bonds mature in five years, and interest is paid semiannually on june 30 and december 31. the bonds were sold for $1,852,800 to yield 12%. winston uses a calendar-year reporting period. using the effective-interest method of amortization, what amount of interest expense should be reported for 2014? (round your answer to the nearest dollar.)