Sergeant Electronics is a company that is going to issue Debt on January 1,2017 in the form of a $1,000,000 , 5 year , 5% debenture . Debentures are unsecured Debt . The interest on this bond debenture is going to be paid semiannually The current market or yield interest rates are 6% (we are going to ignore taxes for this problem ). The Sergeant Electric bond has a coupon , stated , or nominal rate interest rate of 5% . 1) Computer the Proceeds Sergeant Electronics will receive from the issuance of the bond on January 1, 2017 . 2) Use the Modified Easton Approach to record the impact on the Financial Statements of: a) Issuance of the Bond on January 1, 2017 b) Payment of the first semi -annual interest payment on June 30, 2017 c) Retirement of the debt at its normal maturity on December 31,2021 (5 years later) 3) Prepare the bond payment and amortization schedule for the life of the debt/bond 4) Calculate and record the transaction in the Easton Template if Sergeant , instead ,decides to buy the debt back early on the open market before its due date .(An early extinguishment of debt). Sergeant Electronics had decided to buy back the debt on December 31, 2018 , after the interest payment for that period has been made . The prevailing market interest rate is 4%, so the interest rates have fallen since the issuance so (hint)this will result in an increase to the price of the debt . Hint: You will value the Bond as if it is a new bond being issued when a market rate of 4% is in effect (bond coupon is 5%) and the bond has a 3 year life (the amount of time remaining on the bond ). You will then compare this issue price (cost of buying back the debt )to the carrying value of the bond at December 31, 2018