Ritetime Inc. is considering issuing bonds to finance the acquisition of a nationwide chain of distributors of Ritetime’s products. Ritetime is contemplating two different types of bonds to raise the required $75 million purchase price. The first is a traditional 10 year, 10% bond with semiannual interest payments. The second is a 10-year, zero-coupon bond. Assuming the market rate of interest is 10%, compute the face value of the bond issuance and make the journal entries necessary to record the issuance if
(a) A traditional bond is issued and
(b) A zero-coupon bond is issued.