Required valys a pientium, or a decount? Exgion 3. Assume tiot the nsue plice of thy bonds o6 93 Joumatse the folowng bond transactonis a. issuance of the byeds on fotnkyy 28,2020 d. Poment of intereet and ipovisation of the bonds on f ebraary 20,2001 . Deceriter 31.2020 Requirement 1 . If the market interest rate is 1185 * when XTrade ssises its bonids, will the bonds be priced at fitce valie, a premum, of a discount? Explan The 1221 es bonds issuod when the murkor interest rade is 1185= wit be pticed at The 1221% bonde ssued when the macket interest rate is 17% we bo priced at Requirement 3. Assume that the issue pnce of the bonds a bs jourmalize Eie following bond transactons (Record debits first, then credits. Exptanations are not required.) a. Issuance of the bonds on February 28. 2020 b. Payment of interest and amorizabon of the bonds on Augus 31,2020. c. Accrual of interest and amortization of the bonds on December 31, 2020. (Hold all decimals for interim calculations. Round your final answer to the nearest dollar.) Joumal Entry d. Payment of enterest and amortization of the bonds on February 28,2021 , (Hold all decimals for interim calculations. Round your final answer to the nearest dollar.) Journal Entry Required 1. If the market intorest rate is 11855 whon X Trade issues its bonds, will the bonds be priced at tace value, a promum, or a discount? Explain. 2. If the market inferest tate is 17% whon XThade rsues its bonds, will the bonds be priced at lace. value, a premium, of a discount? Explain 3. Assume that the issue price of the tionds is 98 fournatize the folowing bond transactors a. Issuance of the bonds on February 28, 2020 b. Payment of interest and amortization of the bonds on Auyusi 31, 2020 c. Accrual of interest and amortization of the bonds on December 31,2020 d. Payment of interest and amortization of the bonds on Februey 24,2021 4. Report interest paysoble and bonds payable as they would appes on the XTrade balance sheet at Decembet 31, 2020. Requirement 1. if the market internst rate is 1185 \% when X Trade issues its bonds, wit the bonds be priced at tace value, a premium, or a discount? Explan. The 1221 bonts isswod when the maket inkerest rate =1185% will be priced at Thoy are in this manket, so invistors wit poy 10.acquie theit Requirement 2. It the maket interest rate is 17% when XTride issuas its bonos, will the bonds be pricod at face viriee, a premisum, of a discount? Lxplan The 1221% bonds issued when the maket inletest rate is 17% will be priced at They are in this market, so investors will pay. Requirement 3. Assume that the issue price of the bonds is 9e. Journalize the folknong hond transactions. (Record debits first, then credits. Fxplanations are not required.) a. tssuance of the bonds on February 20, 2020 b. Payment of interest and amortzation of the bonds on August 31, 2020 . d. Poyment of interost and amortization of the bonds on February 20, 2021. (Hold all decimals for interim calculations. Round your final answer to the nearest doliz.) to the neatest dollari)
