Required information [The following information applies to the questions displayed below.) Treat each case as being independent from the other cases. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Case C: James Corporation is planning to issue $1,000,000 worth of bonds with a coupon rate of 5 percent. The bonds mature in 10 years and pay interest annually. All of the bonds were sold on January 1 of this year. Required: 1. Assume market (yield) rate, 5 percent. Compute the issue (sale) price on January 1 of this year. 2. Assume market (yield) rate, 4 percent. Compute the issue (sale) price on January 1 of this year. 3. Assume market (yield) rate, 6 percent. Compute the issue (sale) price on January 1 of this year. Answer is complete but not entirely correct. 1. $ 2. Issue price Issue price Issue price $ 1,000,000 1,081,145 926,405 X 3. $ Case D: Miller Bikes is a national chain of upscale bicycle shops. The company has followed a successful strategy of locating near major universities. Miller has the opportunity to expand into several new markets but must raise additional capital. The company has engaged in the following transactions: Issued 45,000 additional shares of common stock. The stock has a $1 par value. The shares sold for $25 per share. Issued bonds. These bonds have a face value of $1,000,000 and a coupon rate of 10 percent. The bonds mature in 10 years and pay interest semiannually. When the bonds were issued, the annual market rate of interest was 8 percent. Required: 1. Record the sale of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2. Record the issuance of the stock. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet