On January 1, 2022, McDonalds Corp. issued a bond that has a stated interest rate of 10%, face amount of $50,000, and is due in 5 years. Interest payments are made semi-annually. The market rate for this type of bond is 12%.

What is the issue price of the bond? (Use the appropriate PV factors from the tables at the end of the textbook and show any calculations that you make.)

Provide the journal entry that McDonald would record on Jan. 1, 2022 for the issue of the bond.

Provide the journal entry that McDonald would record on June 31, 2022 for the semi-annual interest paid on the bond and show any calculations you make.