I need the answers to requirement A and B. On January 1, 2022, McMillan Corporation issued $100,000 par value, 5-year, zero-coupon bonds. The market rate of interest on the date of the bond issue was 6%. The company's fiscal year ends on December31.Future Value of $1 table Future Value of an Ordinary Annuity table Future Value of an Annuity Due tablePresent Value of $1 table Present Value of an Ordinary Annuity table Present Value of an Annuity Due tableRead the requirements.Requirement a. Determine the issue price of the debt. (Use the present value and future value tabformula method, use factor amounts rounded to five decimal places, X.XXXXX. Round your final aThe issue price of the debt is =Requirementsa. Determine the issue price of the debt.b. Prepare the amortization table for the bond issue through January 1, 2025,assuming that McMillan uses the effective interest rate method ofamortization.c. Prepare the journal entries to record the bond issue, the amortization entry onDecember 31, 2022, and payment of the bonds at maturity. Assume that thecompany uses a premium or discount account if needed.PrintDone-or the

B. Amortization tableNote: Since it is a zero-coupon bond, there is no stated interest. I hope I was…

Answered: On January 1, 2022, McMillan…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 3P

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