Spring Forever Inc. has plenty of cash in its savings account. To get a higher return from its cash- saving, it decides to use part of its cash to invest in the bond market. On one hand, it can earn higher interest income from bond investment. On the other hand, it also prepares to sell the bonds when the price of the bond is high. Specific information about the bond is given in the following table.

Date of the transaction:	1-1-2019
Term:	3-year term
Face Value:	2,000
Stated Interest Rate:	15%
Effective Interest Rate:	10%

1 Given the information, how should Spring Forever Inc. measure its bonds investment? Explain why.

2 Calculate the price of the bond. Show your calculation process

3 Prepare the journal entries related to the bond investment for the years 2019 and 2020. The market price of the bond at the end of 2019 and 2020 are 2500 and 2300 respectively