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Harrison Ltd$.$ issued $$4,000,000$ of bonds payable on $30$ April $20$X$0.$ The bonds are due on $30$ April $20$X$8,$ and bear interest at $4\mathrm{.}5\%$ per

annum, payable every $30$ October and $30$ April. The bonds were issued to yield $5\%$ per annum. Harrison's fiscal year ends on $31$ December.

Harrison uses the effective interest method of amortization.

Required:

Calculate the proceeds from issuance.

Calculate the proceeds from issuance if the yield rate is $4\%$ and the bond is issued on $30$ October $20$ X $2,$ still with a maturity date of $30$

April $20$X$8.$

Calculate the proceeds from issuance if the yield rate is $8\%,$ and the bond is issued on $30$ April $20$ X $1,$ still with a maturity date of $30$

April $20$X$8.$

Assume that on $30$ October $20$X$5$ the market rate of interest is $10\%$ for notes of similar risk and maturity. Determine:

a$.$ The book value $($including unamortized discount$/$premium$)$ that will be shown on the statement of financial position at that date

assuming the bond was issued as in requirement $1.$

b$.$ The fair value that will be disclosed in the notes.