PROBLEMS P 14-1 Determining the price of bonds: dis- count and premium issuer and investor LO2 On January 1, 2012, Instaform Company issued 10% bonds with a principal amount of 50 million, duted January 1. The bonds mature in 2031 (20 years). The market yield for bonds of similar risk and maturity is 125 Interest is paid semiannually. Required: 1. Determine the price of the bonds at January 1, 2012, and prepare the journal entry to record their issuance by Instaform 2. Assume the market rate was 9%. Determine the price of the bonds at January 1, 2012 and prepare the journal entry to record their issuance by Instaform 3. Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement 2. prepare the journal entry to record their purchase by Broadcourt