I. On January $1,20$x$1,$ Pacioli Inc. issued $12\mathrm{.}5\%$ bonds, dated January $1,20$x$1,$ with a face value of $$11$

million. The bonds mature in $10$ years. For bonds of similar risk and maturity, the market yield is $10\mathrm{.}75\%.$

Interest is paid semiannually on June $30$ and December $31.$ Pacioli is a calendar$-$year corporation.

$1.$ Determine the price of the bonds at January $1,20$x$1.$

$2.$ Prepare the jouranl entry to record the bond issuance on January $1,20$x$1.$

$3.$ Prepare the amortization schedule through the first $2$ years.

$4.$ Prepare the journal entry to record the interest payment on June $30,20$x$1,$ using the effective interest method.