On 1 July 2022 Bombo Ltd issues $2 million in six-year bonds that pay interest every six months at a coupon rate of 8 per cent. At the time of issuing the securities, the market requires a rate of return of 6 per cent. Interest expense is determined using the effective-interest method.

REQUIRED

a. Determine the issue price.

b. Provide the journal entries at:

i. 1 July 2022

ii. 30 June 2023

iii. 30 June 2024