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Requirement 1. If the market interest rate is 5% when ECU issues its bonds, will the bonds be priced at face value, at a premium,
Requirement 1. If the market interest rate is 5% when ECU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. The 6% bonds issued when the market interest rate is 5% will be priced at They are in this market, so investors will pay to acquire them. Requirement 2. If the market interest rate is 9% when ECU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. The 6% bonds issued when the market interest rate is 9% will be priced at They are in this market, so investors will pay to acquire them. the journal entry. Round your answers to the nearest whole dollar.) a. Journalize the issuance of the bonds on January 1, 2024. Requirements 1. If the market interest rate is 5% when ECU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. 2. If the market interest rate is 9% when ECU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. 3. The issue price of the bonds is 99 . Journalize the following bond transactions: a. Issuance of the bonds on January 1, 2024. b. Payment of interest and amortization on June 30, 2024. c. Payment of interest and amortization on December 31, 2024. b. Journalize the payment of interest and amortization on June 30, 2024. d. Retirement of the bond at maturity on December 31, 2043, assuming the last interest payment has already been recorded
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