Question: 5 points Save horwar Note: Present Value and Present Value of Annuity tables are provided at the end of the exam in Question 7, On

5 points Save horwar Note: Present Value and Present Value of Annuity tables are provided at the end of the exam in Question 7, On 1 July 2022, Michaela Lid issues $1 million in five-year bonds that pay interest every six months at a coupon rate of 10 per cent. At the time of issuing the securities, the market requires a rate of return of 8 per cent. Interest expense is determined using the effective-interest method REQUIRED: 1. What factors may cause the price of a bond (also referred to as a 'debenture') at the issue date to be different from its face value? (1 Mark) 2. Determine the issue price. (1 Mark) 3. Provide the journal entries at: (1) 1 July 2022 (1 Mark) (il) 30 June 2023 (1 Mark) (ill) 30 June 2024. (1 Mark) Note: 1. Journal narrations are required. 2. Round your PV factor to 4 decimal places. Enter your answers in millions of dollars fe.g., 1 million as 1.090,000), Round all other intermediate calculations and final answers to whole numbers. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mat). Open Sans,sa... E BIUS Paragraph 10pt\f

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