On July $1,2015,$ ABC Co$.$ issued $10-$year, $$4,574$ million maturity value, $3\%$ coupon bonds when the market rate was $2\%$ for a cash price of $$4,994$ million. Interest was payable semi$-$annually on Dec. $31$ and June $30.$ ABC also issued $$3,527$ million face value, $20-$year, zero coupon bonds on July $1,2017,$ that matured on June $30,2037,$ for a cash price of $$2,619$million. The effective market interest rate at issuance was $1\mathrm{.}5\%.$ ABC repurchased $$1,143$ million face value coupon bonds on June $30,2020$ for $$1,220$ million cash $($after interest was paid$)$ and $$582$ million in face value of the zero$-$coupon bonds on June $30,2021$ for a purchase price of $$432$ million cash.

Questions $1$ through $6$ use what you have learned about coupon bonds as well as the explanation of zero$-$coupon bonds on p$.542$ of your text. You may research online to help you answer questions $7$ and $8.$ PLEASE PROVIDE IN$-$TEXT CITATIONS AS WELL AS A CITATIONS LIST FOR YOUR ANSWERS to questions $7$ and $8.$ Please answer in complete sentences and show your calculations for numerical answers and journal entries.

Rounding: Round to nearest million with no decimals. This includes all interim number calculations like cash interest. Example: $4168$ M x $\mathrm{.}1968=820\mathrm{.}26=820$ M$.$ Do not include $\mathrm{.}26$ or add zeroes. Round percentages in Question $6$ to two decimal places and dollar amounts should be in millions with no decimals. Rounding a percentage to two decimals example: $422/1368=\mathrm{.}30847=30\mathrm{.}85\%.$ For present values, we recommend using the round function for when using excel. If not using excel to calculate present values, then show all your work, including any PV factors with five decimal places.

$1.$ Show the calculations for how the cash prices were determined for both bond issuances and make the journal entries for each at issuance using discount or premium accounts if applicable. $($Do not net the discount$/$premium in the Bond Payable account$).$ Round to nearest million with no decimals.