The following appeared in the January 1, 2021, issue of the Up2Date Financial & Accounting Times:

The announcement describe below is not an offer of securities for sale or an offer to buy securities.

New Issue January 1, 2021 $550,000,000 AWESOME ACCOUNTING STUDENTS 8.15% Debentures Due October 1, 2031 Price 98.90%

Copies of the prospectus and the related prospectus supplement may be obtained from such of the undersigned as may legally offer these securities under applicable securities laws.

Carrington & Sweeney Inc. Strawser, Strawser, & England Inc Lynch & Mudge, Inc. Quarles & Ameen Inc.

Required: 1. Based on the information provided in the announcement, were the bonds issued at a premium or discount? a. Is the market rate of interest higher or lower relative to the 8.15% indicated? 2. Based on the information provided, what is the selling price of the bonds? 3. If debt issue costs were $50,000 and the bonds were issued on an January 1, 2021, what entry did Awesome Accounting Students use to record the sale? 4. In practice, what do you think is a more common pricing of bonds (discount or premium)? Explain, why?

Bond Case The following appeared in the January 1, 2021, issue of the Up2Date Financial & Accounting Times: The announcement describe below is not an offer of securities for sale or an offer to buy securities. New Issue January 1, 2021 $550,000,000 AWESOME ACCOUNTING STUDENTS 8.15% Debentures Due October 1, 2031 Price 98.90% Copies of the prospectus and the related prospectus supplement may be obtained from such of the undersigned as may legally offer these securities under applicable securities laws. Carrington & Sweeney Inc. Strawser, Strawser, & England Inc Lynch & Mudge, Inc. Quarles & Ameen Inc. Required: 1. Based on the information provided in the announcement, were the bonds issued at a premium or discount? a. Is the market rate of interest higher or lower relative to the 8.15% indicated? 2. Based on the information provided, what is the selling price of the bonds? 3. If debt issue costs were $50,000 and the bonds were issued on an January 2021, what entry did Awesome Accounting Students use to record the sale? 4. In practice, what do you think is a more common pricing of bonds (discount or premium)? Explain, why