On January 1, 2020, Ellison Co. issued eight-year bonds with a face value of $6,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield (market) 8%. a. Using the information provided in this problem, as well as your time value of money tables, calculate the issue price of the bond. For partial credit, be sure to show your work. b. Was the bond issued at a premium or a discount? Explain. 2. A company issues $25,000,000, 7.8%, 20-year bonds to yield (market) 8% on January 1, 2020. Interest is paid on June 30 and December 31. The bond is valued at $24,505,180. a. Record the issuance of the long-term bond as well as the first two interest payments using the effective interest method. b. When a bond is issued at a discount, who benefits? The bond issuer or the bond