DuoTronics, Inc. plans to issue bonds to fund a large investment project that it estimates will cost $10,000,000. The bonds will carry the following profile:
Face Value: $1,000
Coupon: 6%
Payment Frequency: Annual
Maturity: 10 years
Required:
a. How many bonds will DuoTronics need to issue assuming the following Market Rates: i. 4% ii. 6% iii. 9%
b. Show the journal entry at issuance for each of the above Market Rates
c. Show the journal entry used to record the first Coupon Payment for bonds issued at each of the above Market Rates.