2. Bonds Problem II. Bonds Sold at a Discount. On January 1, MNO issued bonds of $700,000 with coupon rate of 12% dated January 2012. The interest is payable semi-annually on June 30 and on December 31. The bonds mature in 3 years. The market or yield rate is 14%. The entire bonds were purchased by a company United Disintergrated Company. Required: a. Compute the purchase or selling price of the bonds. b. Record the transaction in the issuer's general journal. c. Record the first payment of interest On June 30, 3012. d. Preparethejournalentriesto liquidate the bonds on the final year ofthebonds. e. Prepare the schedule for the amortizations of the bonds forthe 3years.