On January 1 of this year, Gateway Company issued bonds with a face value of $1 million

Question:

On January 1 of this year, Gateway Company issued bonds with a of $1 million and a rate of 9 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. When the bonds were issued, the annual market rate of interest was 8 percent. Record the issuance of the bonds on January 1 of this year. How will Gateway's statement of cash flows be affected on January 1, June 30, and December 31 of this year?
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...