3 4 The Sanders Company issued 9.5% bonds, dated January 1, with a face amount of $8,000,000 on January 1, 2023. The 5 bonds mature on December 31, 2032 (10 years). For bonds of similar risk and maturity, the market yield is 11.0% Interest is paid semiannually on June 30 and December 31. Sanders uses the effective interest method. 6 7 8 9 10 11 12 Bonds dated Principal Stated rate Market (effective) rate Term (years) Interest payments per year January 1, 2023 $8,000,000 9.5% 11.0%) 10 2 13 14 1. Determine the price of the bonds at January 1, 2023 using Excel's PV fune 15 16 2. Record the bond issuance by the Sanders Company on January 1, 2023. 17 Date General Journal Debit 18 January 1, 2023 19 20 21 22 3. Record the first interest payment on June 30, 2023 (at the effective rate). 23 Date 24 June 30, 2023 25 26 27 General Journal 28 4. Record the second interest payment on December 31, 2023 (at the effective rate). PV(E8,E9 E10, E8,613 Formula must include the-PV function Credit Debit Credit +