Hartford Research issues bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. The bonds have a $22,000 par value and an annual contract rate of 12%, and they mature in 10 years. (Table B.1, Table B.2, Table B.3, and Table B.4

1. The market rate at the date of issuance is 10%. (a) Complete the below table to determine the bonds' issue price on January 1, 2013.

n=	i=
Cash Flow	Table value	Amount	present value
par (maturity) value
interest (annuity)				Price of Bonds

(b)

Prepare the journal entry to record their issuance. (Record the issue of bonds with a par value of $22,000 cash on January 1, 2013. Assume that the market rate of interest at the date of issue is 10%.)

2.	The market rate at the date of issuance is 12%.

(a)

Complete the below table to determine the bonds' issue price on January 1, 2013.

n=	i=
Cash Flow	Table value	Amount	present value
par (maturity) value
interest (annuity)				Price of Bonds

b)

Prepare the journal entry to record their issuance.

Record the issue of bonds with a par value of $22,000 cash on January 1, 2013. Assume that the market rate of interest at the date of issue is 12%.

3.	The market rate at the date of issuance is 14%.

(a)

Complete the below table to determine the bonds' issue price on January 1, 2013.

n=	i=
Cash Flow	Table value	Amount	present value
par (maturity) value
interest (annuity)				Price of Bonds

(b)	Prepare the journal entry to record their issuance. (Record the issue of bonds with a par value of $22,000 cash on January 1, 2013. Assume that the market rate of interest at the date of issue is 14%)