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Bonds data: Par value: $1,000,000. Bond term: 5-years. Stated interest rate: 14% annually; Market interest rate: 10% annually; Interest is paid annually on April 1

Bonds data:

Par value: $1,000,000.

Bond term: 5-years.

Stated interest rate: 14% annually;

Market interest rate: 10% annually;

Interest is paid annually on April 1st of each year.

Required: Calculate the bond selling price (Round all amounts to the nearest dollar):

Bond selling price = _____________________________

Is this bond issued with premium or discount? ____________________

*If you were not able to find bond selling price above, proceed assuming selling price was $1,100,000

Make journal entry corresponding to issuing such bond

Make adjusting journal entry at the end of the first year

Make journal entry representing the first coupon payment

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