Problem 8: On January 1, 2016 Reno Corp. issued 10-year bonds with a face value of $50,000 and a 4% coupon. The bonds pay interest semiannually on June 30 and December 31. The market interest rate for bonds of similar risk and maturity is 8%. Required: 1. Determine the issue price of the bonds. 2. Prepare the journal entry to record the issuance of the bonds by Reno Corp. on January 1, 2016. Account title Debit Credit 3. Assuming the bond is held until maturity, what is the total economic cost of the borrowing to Reno? 4. Prepare the journal entries to record the first two interest payments. Account title Debit Credit Debit Credit a. Prepare the journal entry to adjust the bonds the end of the fifth year assuming the company elected to value the bonds their then fair value of $50,000. Account title Debit Credit b. Did market interest rates for the bond go up or down since the bond Issuance? Circle ane UD Down