A. On January 1, 2003 Frederick Corp. issued bonds with a maturity value of $2,000,000. The stated rate of interest on the bonds is 8% per annum payable semiannually each June 30 and December 31 until maturity in ten years. 1. If the above bonds are sold to yield 8%, compute the issue (sale) price of the bonds. 2. If the above bonds are sold to yield 10%, compute the issue (sale) price of the bonds. Note: The present value of $1 at 4% for 20 periods is .4564. The present value of $1 at 5% for 20 periods is .3769. The present value of an annuity of $1 at 4% for 20 periods is 13.5903. The present value of an annuity of $1 at 5% for 20. periods is 12.4622. 13. On January 1, 2004 McCabe Corp. issued $600,000 of 5-year bonds dated January 1, 2004. These bonds have a stated rate of interest of 9% payable semiannually on January 1 and July 1. The bonds were sold at 96. McCabe Corp. uses straight-line amortization and has a calendar year end. Prepare the necessary journal entries that the McCabe Corp. would make relative to these bonds on January 1, 2004; July 1, 2004; and December 31, 2004