Bonds and Interest rates

Hello

I am a bit confused about the interest rates in the following since in the answer i am seeing an interest expense of 1.7 but i am also seeing cash received of 2. Why is there an interest expense? Since the bond was purchased I’m thinking there should only be an interest received.

On 1 May 2012, a 20 million 5 year bond was purchased with a semi-annual interest rate of 5% payable on 31 Oct and 30 Apr. The purchase price of the bond was 21.62 million. The effective annual interest rate is 8% or 4% on a semi annual basis. The bond is held at amortised cost. At 1 May 2014, the amortised cost of the bond was 21.046 million. The issuer of the bond did pay interest due on 31 Oct 20×4 and 30 Apr 20×5 but was in financial trouble at 30 Apr 20×5. The total future cash receipts are $2.34mil on 30 Apr 20×6 and $8mil on 30 Apr 20×7.The current interest rates for discounting cash flows as at 30 Apr 20×5 is 10%. Assume the compound rate for discounting cash flows is 8%. You are required to make the entries in the financial statements, 30 Apr 20×5 for the bond since 30 Apr 20×4.