Company Bond Price Stated Rate 1. BB Corp. $109 million 11% 2. DD Corp $ 100 million 10% 3. GG Corp. $ 91 million 95 Each of the bond issues matures on December 31, 2040, and pays interest semiannually on June 30 and December 31. For bonds of similar risk and maturity, the market yield at January 1, 2021, is 10% Required: Other things being equal, which of the bond issues offers the most attractive investment opportunity if it can be purchased at the prices stated? The least attractive? Why? Determine the price of a $1 million bond issue under each of the following independent assumptions E 14-2 Determine the price of bonds in various situations LO14-2 1. 2. Maturity 10 years 10 years 10 years 20 years 20 years Interest Paid annually semiannually semiannually semiannually semiannually Stated Rate 10% 10% 12% 12% 12% Effective Market Rate 12% 12% 10% 10% 12% 5. 14-3 etermine the ice of bonds; suance: Fective interest LO14-2 The Bradford Company issued 10% bonds, dated January 1, with a face amount of $80 million on January 1, 2021. The bonds mature on December 31, 2030 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Required: 1. Determine the price of the bonds at January 1, 2021. 2. Prepare the journal entry to record their issuance by The Bradford Company on January 1, 2021