1. If the market interest rate is 6% when PCU issues its bonds, will the bonds be priced at face get a better print-out.

value, at a premium, or at a discount? Explain.

2. If the market interest rate is 9% when PCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain.

3. The issue price of the bonds is 94. Journalize the following bond transactions:

* Issuance of the bonds on January 1, 2018.

* Payment of interest and amortization on June 30, 2018.

* Payment of interest and amortization on December 31, 2018.

* Retirement of the bond at maturity on December 31, 2037 , assuming the last interest payment has already been recorded.

On January 1, 2018, Professors Credit Union (PCU) issued 8%, 20-year bonds payable with face value of $300,000. The bonds pay interest on June 30 and December 31. Read the requirements Requirement 1. If the market interest rate is 6% when PCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. The 5% bonds issued when the market Interest rate is 6% will be priced at a premium . They are attractive in this market, so investors will pay more than face value to acquire them. Requirement 2. If the market interest rate is 9% when PCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. The 5% bonds issued when the market interest rate is 9% will be priced at a discount. They are unattractive in this market, so investors will pay less than face value to acquire them, Requirement 3. The issue price of the bonds is a Joumalize the bond transactions. (Assume bonds payable are amortized using the straight-ine amortization method. Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest whole dollar) a. Joumalize the issuance of the bonds on January 1, 2018 Requirements Date Accounts and Explanation Debit Credit 2018 Jan. 1 1. If the market interest rate is 6% when PCU issues its bonds, wil the bonds be priced at face Discount on Bonds Payable value, at a premium, or at a discount? Explain. 2. the market interest rate is 9% when PCU issues its bonds, wil the bonds be priced at face Bonds Payable 300000 value, at a premium, or at a discount? Explain. 3. The issue price of the bonds is 94. Journalize the follow bond transactions: a Issuance of the bonds on January 1, 2018 b. Payment of interest and amortization on June 30, 2018 c. Payment of interest and amortization on December 31, 2018 d. Retirement of the bond at maturity on December 31, 2037, assuming the last interest payment has already been recorded Cash Print Done