On January 1, 2024, Instaform, Incorporated, issued 12% bonds with a face amount of $75 million, dated January 1.

• The bonds mature in 2043 (20 years).
• The market yield for bonds of similar risk and maturity is 14%.
• Interest is paid semiannually.

Required:

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

1-b. Prepare the journal entry to record their issuance by Instaform.

2-a. Assume the market rate was 11%. Determine the price of the bonds at January 1, 2024.

2-b. Assume the market rate was 11%. Prepare the journal entry to record their issuance by Instaform.