On January 1, 2016, Instaform, Inc., issued 12% bonds with a face amount of $60 million, dated January 1. The bonds mature in 2035 (20 years). The market yield for bonds of similar risk and maturity is 14%. Interest is paid semiannually.

Required: 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 11%. Determine the price of the bonds at January 1, 2016 4) Prepare the journal entry to record their issuance by Instaform. 5) 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.