on january 1 2024 Mechanics Cedit Union (MCU) issued 8% 20 years bond payable with face value of $650000. The bonds pay interest on June 30 and December 31

1. If the market interest rate is 6% when MCU issues its bonds, will the bonds be preed at face value, at a premium, or at a discount? Explain. 2. If the market interest rate is 9% when MCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain 3. The issue price of the bonds is 93 . Journalize the following bond transactions: a. Issuance of the bonds on January 1, 2024 b. Payment of interest and amortization on June 30,2024 c. Payment of interest and amortization on December 31,2024. d. Retirement of the bond at maturity on December 31. 2043, assuming the last interest payment has already been recorded. Requirement 1. If the market interest rate is 6% when MCU issues its bonds will the bonds be priced at face value, at a premium or at a discount? Explain The 8% bonds issued when the market interest rate is 6% will be priced at They are In this market so investors will pay to acqung them Requirement 2. If the market interest rate is 9% when MCU issues its bonds. Will the bands be priced at face value, at a premium, or at a discount? Explain The 8% bonds issued when the market interest rate is 986 wall be priced at In this market so investors will pay to acquira tham Thay are b. Journalize the payment of interest and amortization on June 30,2024 c. Journalize the payment of interest and amortization on December 31, 2024 d. Retirement of the bond at maturity on December 31,2043, assuming the last interest payment has already been recorded