On January $1,2024,$ Instaform, Incorporated, Issued $14\%$ bonds with a face amount of $$50$ million, dated January $1.$

The bonds mature in $2043(20$ years$).$

The market yleld for bonds of similar risk and maturity is $16\%.$

Interest is pald semlannually.

Requlred:

$1-$a$.$ Determine the price of the bonds at January $1,2024.$

$1-$b$.$ Prepare the journal entry to record their Issuance by Instaform.

$2-$a$.$ Assume the market rate was $12\%.$ Determine the price of the bonds at January $1,2024.$

$2-$b$.$ Assume the market rate was $12\%.$ Prepare the Journal entry to record thelr Issuance by Instaform.

$3.$ Assume Broadcourt Electronics purchased the entire Issue In a private placement of the bonds. Using the data In requirement $2.$ prepare the Journal entry to record the purchase by Broadcourt.