1. On 1/1/23, BIGDEBT issued $11,500,000 face value bonds, dated 1/1/23, with a coupon rate of 7% for a price of $9,380,000. Interest is paid semiannually on 6/30 and 12/31. The bonds have a 5-year life, with principal due on 12/31/27. The bonds are callable (redeemable) by BIGDEBT at any time at a price of 1.06 (or $1,060 per $1,000 bond).

a. Compute the annual market interest rate (i.e., what was the market rate of interest on Jan. 1, 2023--the date the bonds were issued.)

b. Prepare and attach an amortization schedule in EXCEL to cover the life of the bonds. (Use the format on attached schedules.) Put schedule on a separate sheet and attach to last page.

c. Prepare the journal entry to record the issuance on 1/1/23. (If there is a Discount or Premium, show it in a separate account in your journal entry):