Question 1: Company DS intended to issue a bond with face value of S100,000 having a maturity of 5 years and annual coupon of 8% At the time of issae however, the market interest rate rose to 10% and the bond could fetch a price of $92,420 only. Interest is paid on July 1 and January 1.Company uses straight-line amortization. Required: Make the journal entry to record issuance of bond. Make the amortization table. Make the first entry for payment of interest. Make the second entry for the payment of interest. Find out the cost of borrowing