Question: I need help answering the following problem: Baxter Co. decides to issue the following bond: A $100,000 20-year Bond bearing 6% interest. Interest payments are

I need help answering the following problem:

Baxter Co. decides to issue the following bond:

A $100,000 20-year Bond bearing 6% interest. Interest payments are to be made semi-annually. The current market rate for a similar bond is 8%.

  1. Determine the issue price for the bonds.
  2. Prepare the journal entry to record the issue of the bond.
  3. Prepare the journal entry to record the first semi-annual interest payment, assuming straight-line amortization.

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