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On January 1, 2024, Technicians Credit Union (TCU) issued 6%, 20-year bonds payable with face value of $500,000. The bonds pay interest on June 30 and December 31. Read the requirements. Requirements 4 1. If the market interest rate is 5% when TCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. 2. If the market interest rate is 8% when TCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. The issue price of the bonds is 96. Journalize the following bond transactions: Issuance of the bonds on January 1, 2024. Payment of interest and amortization on June 30, 2024. Payment of interest and amortization on December 31, 2024. Retirement of the bond at maturity on December 31, 2043, assuming the last interest. payment has already been recorded. 3. a. b. c. d. Print Done - X

On January 1, 2024, Technicians Credit Union (TCU) issued 6%, 20-year bonds payable with face value of $500,000. The bonds pay interest on June 30 and December 31. Read the requirements. Requirements 4 1. If the market interest rate is 5% when TCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. 2. If the market interest rate is 8% when TCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. The issue price of the bonds is 96. Journalize the following bond transactions: Issuance of the bonds on January 1, 2024. Payment of interest and amortization on June 30, 2024. Payment of interest and amortization on December 31, 2024. Retirement of the bond at maturity on December 31, 2043, assuming the last interest. payment has already been recorded. 3. a. b. c. d. Print Done - X

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I just need all the parts of requirement three 
On January 1, 2024, Technicians Credit Union (TCU) issued 6%, 20-year bonds payable with face value of $500,000. The bonds pay interest on June 30 and December 31. Read the requirements Requirements h 1. If the market interest rate is 5% when TCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. 2. If the market interest rate is 8% when TCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. The issue price of the bonds is 96. Journalize the following bond transactions: Issuance of the bonds on January 1, 2024. Payment of interest and amortization on June 30, 2024. Payment of interest and amortization on December 31, 2024. Retirement of the bond at maturity on December 31, 2043, assuming the last interest. payment has already been recorded. 3. a. b. c. d. Print Done - X
Transcribed Image Text:On January 1, 2024, Technicians Credit Union (TCU) issued 6%, 20-year bonds payable with face value of $500,000. The bonds pay interest on June 30 and December 31. Read the requirements Requirements h 1. If the market interest rate is 5% when TCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. 2. If the market interest rate is 8% when TCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. The issue price of the bonds is 96. Journalize the following bond transactions: Issuance of the bonds on January 1, 2024. Payment of interest and amortization on June 30, 2024. Payment of interest and amortization on December 31, 2024. Retirement of the bond at maturity on December 31, 2043, assuming the last interest. payment has already been recorded. 3. a. b. c. d. Print Done - X
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