2. Now Defunct Co., Inc. issued $6,500,000 of 4.25% bonds on July 1 that will pay interest semiannually on January 1 and July 1 and mature in 9 years. Assume that the market rate of interest is 4.15% per year. i) Using the 2 Step Method compute the selling price of the bonds ii) Are the bonds sold at a discount or premium? how can you tell? iii) What is the premium or discount? iv) What is the journal entry for the sale of the bonds by the issuer? Cm v) What is the journal entry to make an interest payment by the seller? Joomla