PLEASE HELP ME WITH THESE QUESTIONS:

1)

Today is your birthday, your friend agrees to pay you $100 every month for 1 year, with the first payment being paid today. Your friend is very trustworthy and will make every payment on time, and the market rate for your friend is 12%. What is the present value (monetary value only) of this birthday gift?

2)

On Jan 1st 2020, your firm purchases merchandise inventory from its supplier and gives the supplier a bond. The bond has a face amount of $100,000. The bond pays 8% annual interest compounded annually, for 2 years. The market rate for similar bonds is 5%.

a) Provide the transactional journal entries on Jan 1st 2020.

b) Provide the journal entries on Dec 31st 2020 when the first interest payment is made.

3)

Your company purchases a $20,000 bond from a local municipality. The bond matures 1 year from the date of issue and is issued at PAR - the stated rate is 10%. The market rate for similar bonds is 10%. Assuming an efficient market for bonds, what is the purchase price of this bond? (Review section of notes about bonds)