On January1,2020 Ellison Co. issued nine-year bonds with a face value of $200,000,000 payable semiannually on June 30 and December 31. The bonds are callable at 101. See Excel Table for coupon rate and market rate of interest

1. What is the issue price of the bonds?
2. Prepare an amortization table using the effective interest rate method for the eight years of the bonds.
3. Prepare the journal entries for the interest payments on June 30, 2020 and December 31, 2020.
4. Assume that the bonds are called on December 31, 2024 at 101. Prepare the journal entry to record the call.

Coupon Rate	Market Rate
2.5%	4%