On January 1,2018 Mechanics Credit Union (MCUMCU) issued 6% ,20-year bonds payable with face value of $900,000. The bonds pay interest on June 30 and December 31.

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P12-34A (similar to) EQueslion Hlelp On January 1, 2018, Mechanics Credit Union (MCU) issued 6%, 20-year bonds payable with face value of $900,000. The bonds pay interest on June 30 and December 31 Read the requirame Requirement 1, It the market interest rate ia 5% when MCU isaues ts bonds wll the bonds be Rriced at face value at a cremium or at a discount? Exolain They are The 6% bonds issued wher in this mwkel so imeslors will py o scquire them he markel interesl rele is will be priced st Click to select your answeris) and then click Check Answer. X Requirements 1. If the market interest rate is 5% when MCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain 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 2. 3. The issue price of the bonds is 94. Journalize the following bond transactions: Issuance of the bonds on January 1, 2018. Payment of interest and amortization on June 30, 2018 Payment of interest and amortization on December 31, 2018. a. b. C. d. Retirement of the bond at maturity on December 31, 2037, assuming the last interest payment has already been recorded Print Done