Discussion:

When a corporation issues bonds, the price that buyers are willing to pay for the bonds depends on $(1)$ the face amount of the bonds, $(2)$ the contract rate of interest to be paid on the bonds, and $(3)$ the market rate of interest. If the contract rate of interest equals the market rate of interest, the bonds will sell at their face amount. If the contract rate of interest is less than the market rate of interest, the bonds will sell at a discount. If the contract rate of interest is more than the market rate of interest, the bonds will sell at a premium.

Original Post:

Make your original post by Wednesday $11$:$59$ p$.$m$.$

Answer the following questions and support your responses with detail.

The following data relate to a $$2,000,000,8\%$ bond issued for a selected semiannual interest period:

Bond Information

$\backslash$table$[[$Bond carrying amount at beginning of period,$$2,125,000$