A company issued $625,000 of 7%, 15-year bonds at 103 on July 1, 2018. Interest is payable semiannually on December 31 and June 30. On July 1, 2023, the company retired the bonds at 97.
Required
1. 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?
2. 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)