CHAPTER 14 HANDOUT On January 1, 2021, XYX Corp. issued bonds with face value of $1,000,000. Bonds pay 10% interest annually at Dec. 31 and mature on Dec. 31, 2025. Calculate the issue price of the bonds assuming that the market rate of interest is 10%, 12%, and 8%. Required. 1. 2. 3. Calculate the issue price of the bonds Prepare the journal entries to record the bond issuance and annual interest for issuer and investor using (a) effective interest method and (b) straight line method. Assume that entire bond issue is retired on 1/1/24. Prepare the journal entries to record the bond retirement in the books of issuer and investor using (a) effective interest method and (b) straight line method.