On January $1,2024,$ Instaform, Incorporated, issued $10\%$ bonds with a face amount of $$51$ million, dated January $1.$

The bonds mature in $2043(20$ years$).$

The market yield for bonds of similar risk and maturity is $12\%.$

Interest is paid semiannually.

Required:

$1-$a$.$ Determine the price of the bonds at January $1,2024.$

$1-$b$.$ Prepare the journal entry to record their issuance by Instaform.

$2-$a$.$ Assume the market rate was $9\%.$ Determine the price of the bonds at January $1,2024.$

$2-$b$.$ Assume the market rate was $9\%.$ Prepare the journal entry to record their issuance by Instaform.

$3.$ Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement $2,$ prepare the journal entry to record the purchase by Broadcourt.

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$