on 1 april 2012 , xxx limited issued $5 million in five year debentures that pay interest every six months at a coupon rate of 8 per cent. at the time of issuing the securies, the market requiered a rate of return of 10 per cent . Interest expense is determine by using the effective -interest method.

Requiered

(a) Determine the issue price

(b) provide the journal entries at :

(I) 1 april 2012

(ii) 31 march 2013

(iii) 31 March 2014