Required Compute the cash proceeds from bond issues under the following terms. For each case, indicate whether the bonds sold at a premium or discount.

a. Pear, Inc. issued $400,000 of 10-year, 8 percent bonds at 103.

b. Apple, Inc. issued $200,000 of 5-year, 12 percent bonds at 97 1/2.

c. Cherry Co. issued $100,000 of 5-year, 6 percent bonds at 102 1/4.

d. Grape, Inc. issued $120,000 of 4-year, 8 percent bonds at 96.