A company issued $$575,000$ of $6\%,15-$year bonds at $97$ on July $1,2018.$ Interest is

payable semiannually on December $31$ and June $30.$ On July $1,2023,$ the company

retired the bonds at $102.$

Required

Was this bond issued at a discount or a premium? What does that mean? Why

would this bond have been issued at a discount or premium?

For the company in this example, use the financial statement effects template

discussed in class to record:

a$.$ The bond issuance on July $1,2018$

b$.$ The first coupon payment on December $31,2018$

c$.$ The retirment of the bond on July $1,2023($HINT: $10$ periods have elapsed$)$