On July 1, 2015, ABC Co. issued 10-year, $4,574 million maturity value, 3% coupon bonds when the market rate was 2% for a cash price of $4,994 million. Interest was payable semi-annually on December 31 and June 30. ABC also issued $3,527 million face value, 20-year, zero-coupon bonds on July 1, 2017, that mature June 30, 2037, for a cash price of $2,619 million. The effective market interest rate at issuance was 1.5%. ABC repurchased $1,143 million face value coupon bonds on June 30, 2020 for $1,220 million cash (after interest was paid) and $582 million in face value of the zero- coupon bonds on June 30, 2021 for a purchase price of $432 million cash. Questions 1 through 6 use what you have learned about coupon bonds as well as the explanation of zero-coupon bonds on page 537 of your text. You may research online to help you answer Question 7. PLEASE PROVIDE CITATIONS IN YOUR ANSWER TO QUESTIONS 7 AND 8. Please answer in complete sentences and show your calculations for numerical answers and journal entries. Round your numbers and percentages (see below for PV factor rounding) to two decimal places and retain dollars in millions. If using Excel to determine your present values, please upload that file in addition to any Word or PDF documents you may want to upload. Show all your work, including any PV factors with four decimal places, if not using Excel.

5. At the end of June 30, 2020, what was the book value of the coupon bonds before the repurchase transaction? At the end of June 30, 2021, what was the book value of the zero-coupon bond before the repurchase transaction? Name the two accounts and their respective balances from the Balance Sheet that combine to determine the book value for each bond. Reference your entry in Question 1 and your amortization tables for the unamortized premium/discount at these specific dates.