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steo by step please Mr. Chen needs to raise capital for his business. He decides his capital need is $1,000,000. He wants to raise 40%

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steo by step please

Mr. Chen needs to raise capital for his business. He decides his capital need is $1,000,000. He wants to raise 40% in debt and 60% in equity. He will offer five year 5% bonds and common stock at $100 per share. Mr. Bedford buys all the bonds and all the stock on January 1. 1. Record the transaction on the books of Mr. Chen and and on Mr. Bedford's books. 2. Record the interest payment made on 7/1 on the books of Mr. Chen and Mr. Bedford. If one year later bods rated at a similar degree of risk to the Chen bonds are paying: A) 4% B) 9% Calculate what you will pay for the Chen Bonds under assumption A and B. Record the purchase of the bonds under each assumption

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