Question: 2 (10 points) The Bradford Company issued 10% bonds, dated January 1 witha face value of $80 million on January 1, 2016. The bonds mature

2 (10 points) The Bradford Company issued 10% bonds, dated January 1 witha face value of $80 million on January 1, 2016. The bonds mature on December 31, 2025. (40 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semi- annually on June 30th and December 31st. 1. Determine the price of the bonds. 3. Prepare the journal entries to record interest on June 30th, 2016. (using the effective interest method)

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