Minicase1Bond ProblemRed Corp issues $1,000,000, 8% five year bonds with interest paid semiannually.

 
   

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Minicase1Bond ProblemRed Corp issues $1,000,000, 8% five year bonds with interest paid semiannually. The current marketrate of interest is 10%. • Required:––––– Compute the price of the bondCompute the discount/premiumRecord the issuance of the bondsRecord the first interest payment including straight line amortization.After 2 years, the company redeems the bonds at $1,040,000. Record thetransaction.