100,000 5 years 2 Bond X 3 Par Value 4 Term 5 Contract Interest Rate 6 Market Interest Rate 7 Issue Price 8% 10% 96 3 8 1) Is this bond being issued at Par Value, at a Discount, or at a Premium? a 92) If the bond pays interest semi-annually, how many total interest payments will be made? 10 3) What is the amount of each interest payment? 11 4) How much cash will be received when this bond is issued? 12 5) If there is a Discount or Premium, how much is it? 136) If there is a Discount or Premium, how much will be amortized with each interest payment? 147) What amount of interest expense will be booked each time interest is paid? 158) What is the journal entry at issuance? 16 DR/CR Account Debit Credit 18 11 TE a) What is the father an! Ant De 1 What is the soyce De Account