A company issues a $10,000 bond with an interest rate of 4% per year. Interest is paid once per year, and it will mature in 5 years. Investors expect bonds of similar risk and maturity to pay interest of 7%: Show work

a.

Calculate the selling price of the bond. Round to two decimal places.

b. Record the journal entry that the company would record when this bond is issued

c. Record the journal entry for the first interest payment