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On January 1, 2018, Instaform, Inc., issued 10% bonds with aface amount of $58 million, dated January 1. The bonds mature in2037 (20 years). The market yield for bonds of similar risk andmaturity is 12%. Interest is paid semiannually.Required:1-a. Determine the price of the bonds at January 1,2018.1-b. Prepare the journal entry to record theirissuance by Instaform.2-a. Assume the market rate was 9%. Determine theprice of the bonds at January 1, 2018.2-b. Assume the market rate was 9%. Prepare thejournal entry to record their issuance by Instaform.3. Assume Broadcourt Electronics purchased theentire issue in a private placement of the bonds. Using the data inrequirement 2, prepare the journal entry to record the purchase byBroadcourt.