On January 1, 2016, instaform Inc., issued 10% bonds with a face amount of $48 million, dated January 1. The bonds mature in 2015 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually.

1.1 Determine the price of the bonds at January 1, 2016

1.2 Journal entry to record their issuance by instaform.

1.3 Assume the market rate was 9%. Determine the price of the bonds at January 1, 2016.

1.4 Journal entry to record their issuance by Instaform

1.5 Assume Broadcourt purchased the entire issuance in a private placement of the bonds. Using the data in requirement 2, prepare the journal entry to record the purchase by Broadcourt.

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