Using the effective method for recoding interest.... ABC Co. issued 11% bonds with a face amount of $8 million on Jan. 1, 2020, maturing Dec. 31, 2039. The market rate is 12%. Interest is paid twice a year on 6/30 and 12/31.

1. Prepare journal entries for:

1. issuance on 1/1/2020
2. recording interest on 6/30/2020
3. recording interest on 12/31/2020
4. recording interest on 6/30/2039
5. payment of interest and principle on 12/31/2039.

2. What is the selling price using Excels PV function?