DALLAS CO. issued bonds on March 1, 2020, with a par value of $450,000. The bonds mature in 10 years and pay 9.00% annual interest in two semiannual payments. On the issue date, the annual market rate of interest for the bonds turned out to be 12%. (Use appropriate factor(s) from the tables or calculator.) SHOW ALL CALCULATIONS REQUIRED:

a. Use the information about the interest rates to decide whether the bonds were issued at par, at a discount, or at a premium.

b. What is the size of the semiannual interest payment for these bonds?

c. How many semiannual interest payments will be made on these bonds over their life?

d. Estimate the market value of the bonds as of the date they were issued. (Round the final answers to the nearest whole dollar.)

e. Present the journal entry that would be made to record the bonds issuance. (Round the final answers to the nearest whole dollar.)

f. Explain in 3-5 sentences why Dallas would be issuing these bonds and what ratios might be affected by the issue of bonds.