Bond Premium and Discount}

Moscow Ltd. is contemplating selling bonds. The issue is to be composed of 750 bonds, each with a face amount of \(\$ 1,000\).

\section*{Required:}

1. Calculate how much Moscow is able to borrow if each bond is sold at a premium of \(\$ 30\).

2. Calculate how much Moscow is able to borrow if each bond is sold at a discount of \(\$ 10\).

3. Calculate how much Moscow is able to borrow if each bond is sold at \(92 \%\) of face value.

4. Calculate how much Moscow is able to borrow if each bond is sold at \(103 \%\) of face value.

5. Assume that the bonds are sold for \(\$ 975\) each. Prepare the entry to recognize the sale of the 750 bonds.

6. Assume that the bonds are sold for \(\$ 1,015\) each. Prepare the entry to recognize the sale of the 750 bonds.

\section*{Exercise