1)On March 1, 2014, Catalin Corporation issued $40 million in bonds that mature in 10 years. The bonds have a stated interest rate of 5.8 percent and pay interest on March 1 and September 1. When the bonds were sold, the market rate of interest was 6 percent. Catalin uses the effective interest method. By December 31, 2014, the market interest rate had increased to 6.5 percent

2)Record the issuance of the bond on March 1, 2014. (Enter your answers in dollars and not in millions. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 4 decimal places.)

3)Compute the present value of the difference between the interest paid each six months over the life of the bond and the interest demanded by the market. Use the market rate of interest and the 10-year life of the bond in your present value computation. (Enter your answers in dollars and not in millions. Round time value factor to 4 decimal places.)

4)Record the payment of interest on September 1, 2014. (Enter your answers in dollars and not in millions. Round your answers to the nearest dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

5)Record the adjusting entry for accrued interest on December 31, 2014. (Enter your answers in dollars and not in millions. Round your answers to the nearest dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

6)Compute the present value of Catalins bonds, assuming that they had a 7-year life instead of a 10-year life. (Enter your answers in dollars and not in millions. Round your answer to the nearest dollar amount. Round time value factor to 4 decimal places.)