DECISION-MAKING ACROSS THE ORGANIZATION - 10-8 on January 1, 2015, Picard Corporation issued $3,000,000 5-year, 8% bonds at 97. ebonds pay interest annually on January 1. By January 1, 2017, the market rate of interest for bonds of risk similar to those of Picard Corporation had risen. As a result, the market price bonds was $2,500,000 on January 1, 2017-below their carrying value of $2,946,000. Geoff Marquis, president of the company, suggests repurchasing all of these bonds in the open 2,500,000 (face value) of new 10-year, 12% bonds at par. The president asks you, as con- n market at the $2,500,000 price. But to do so the company will have to issue troller, "What is the feasibility of my proposed repurchase plan?" Instructions With the class divided into groups, answer the following. (a) Prepare the journal en ing journal entry to issue the new 10-year bonds economic factors that you believe should be considered for his repurchase proposal. (b) Prepare a short memo to the president in response to his request for advice. List the