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On january 1, 2018 technicians credit union issues 7% 20 year bonds payable with face value of 800,000. the bonds pay interest on june 30
On january 1, 2018 technicians credit union issues 7% 20 year bonds payable with face value of 800,000. the bonds pay interest on june 30 and december 31
| 1. | If the market interest rate is 6 %6% when TCUTCU issues its? bonds, will the bonds be priced at face?value, at a? premium, or at a? discount? Explain. | |
2. if the market interest rate is 8% when tcu issues its bonds, will the bonds be priced at fair value, at a premium , or at a discount explain?
| 3. | The issue price of the bonds is 98. Journalize the following bond? transactions: | |
| a. | Issuance of the bonds on January? 1, 2018. | |
| b. | Payment of interest and amortization on June? 30, 2018. | |
| c. | Payment of interest and amortization on December? 31, 2018. | |
| d. | Retirement of the bond at maturity on December? 31, 2037?, assuming the last interest payment has already been recorded. | |
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