On 1 July 2021 Michael Ltd. issues $1 million in five-year debentures that pay interest each six months at a coupon rate of 10% per annum. At the time of issuing the securities, the market requires a rate of return of 12% per annum. Interest expense is determined using the effective- interest method. Required: (a) Determine if the issuance of the debenture is at premium or discount? (2 marks) ANSWER a): (b) Determine the issue price of the debentures (4 marks)