On July 1,2018,Jordie Equipment Dealer issued $600,000 of 9% bonds payable that mature in seven years.These bonds were issued at face value and pay interest each June 30 and December 31.Each semiannual interest payment is $27,000.

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The bonds were issued at face value, which means the initial proceeds from the bond issuance are equal to the face value of the bonds. In this case, the face value of the bonds is $600,000, and since the bonds were issued at face value, that's also the initial proceeds Jordie Equipment Dealer received from the bond issuance. The fact that the semiannual interest payments are $27,000 each confirms that the bonds have a 9% coupon rate (i.e., 9% of $600,000 = $54,000 / year, or $27,000 / payment). Finally, the fact that the bonds mature in seven years confirms that they have a 7-year term to maturity.

On July 1,2018,Jordie Equipment Dealer Issued $600,000 of 9% Bonds