On January 1, 2024, Instaform, Incorporated, issued 10% bonds with a face amount of $48 million, dated January 1.

• The bonds mature in 2043 (20 years).
• The market yield for bonds of similar risk and maturity is 12%.
• Interest is paid semiannually.

Determine the price of the bonds at January 1, 2024.

Prepare the journal entry to record their issuance by Instaform.

Assume the market rate was 9%. Determine the price of the bonds at January 1, 2024.

Assume the market rate was 9%. Prepare the journal entry to record their issuance by Instaform.

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.

Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)