On January 1, 2014, Glen Wild Sold a $1,000,000 Bond

On January 1, 2014, Glen Wild sold a $1,000,000 bond issue to finance the construction of a new
18-hole golf course and clubhouse.The bond has a coupon rate of 10% interest (payable annually each
December 31st and matures in ten years.
Required:
A) Indicate the selling price and show the calculations to support issuing the bond under each of the following three market conditions.Bond A; Bond B; and Bond C: $$\begin{array} { l c } \text { Bond } & \text { Yield } \\\text { Bond } A & 11 \% \\\text { Bond } \mathrm { B } & 9 \% \\\text { Bond } \mathrm { C } & 10 \%\end{array}$$ B) Using the effective interest method, calculate the interest expense and the cash payment for interest on
December 31, 2014 for each scenario.