Question: ABC Corporation is going to issue a $1000 face value bond, dated January 1, 2015 with 6% coupon rate (paid semi-annually on June 30th and

ABC Corporation is going to issue a $1000 face value bond, dated January 1, 2015 with 6% coupon rate (paid semi-annually on June 30th and December 31st) and maturity of December 31, 2035.

1. Identify the following: a. Face (or par) Value b. Interest (stated) Rate c. Term

2. Prepare journal entries for the following mutually exclusive transitions: Issue bond on January 1, 2015 at par Issue bond on January 1, 2015 at 95.5 Issue bond on January 1, 2015 at 105.5 Pay semi-annual interest on June 30, 2015 for the bond issued at par Bond maturity on December 31, 2035 for bond issued at par

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