Echo Industries received authorization on December 31 2010 to issue $7000000 fa

Echo Industries received authorization on December 31 2010 to issue $7000000 face value of 6% 10-year bonds. The interest payment dates are June 30 and
December 31. All the bonds were issued on January 1 2011 at which time similar bonds were trading in the marketplace at 8%.
Review the information about Echo Industries.

REQUIRED: A. How much cash will investors receive on June 30 2011? B. What is the market rate for these bonds? C. How many interest payments will investors receive over the life of the bond? D. Will the bond be sold at a premium or discount? E. What will the issue price be for the bonds? (Show calculations to receive partial credit.)