Problem $14-8$A $A^A$ Computing bond price and recording issuance $$

$C2$

Hartford Research issues bonds dated January $1$ that pay interest semiannually on June $30$ and December $31.$ The bonds have a $$40,000$ par value and an annual contraet rate of $10\%,$ and they mature in $10$ years.

Required

For each separate situation, $($a$)$ determine the bonds' issue price on January $1$ and $(b)$ prepare the journal entry to record their issuance.

The market rate at the date of issuance is $8\%.$

The market rate at the date of issuance is $10\%.$

The market rate at the date of issuance is $12\%.$

$(3)$ Discount, $$4,588$

Page $522$