Bond A: Face Value of $600,000; stated interest rate of 8%; maturity is 3 years; it pays the interest each year. When it is issued the market interest rate is 4%.

Bond B: Same as Bond A, except when you issue the bond the market interest rate is 12%.

1. A diagram of the cash flow (what you are offering to the public)
2. Determine the cash you will receive when you sell the bond
3. Provide the stated price of the bond (what the Wall Street Journal would quote)
4. Provide the journal entry for issuing the bond
5. Provide the journal entries for the interest payments
6. Provide the journal entry to pay the principle