On January 1, 2016, Instaform, Inc., issued 10% bonds with a face amount of $50 million, dated January 1. The bonds mature in 2035 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually. (FV of $1,PV of $1,FVA of $1,PVA of $1,FVAD of $1andPVAD of $1)

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

2. Prepare the journal entry to record their issuance by Instaform

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

4. Prepare the journal entry to record their issuance by Instaform.