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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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