Exercise 1: Determine the price of a $1 millionbond issueunder each of the following independent assumptions:MaturityInterest PaidStated RateMarket Rate1. 10 years annually 10% 12%2. 10 years semiannually 10% 12%3. 10 years semiannually 12% 10%4. 20 years semiannually 12% 10%5. 20 years semiannually 12% 12%Exercise 2:TheBradford Companyissued 10% bonds dated January 1 with a face amount of $80 million on January 1 2013. The bonds mature on December 31 2022 (10 years). For bonds of similar risk and maturity themarket yieldis 12%. Interest is paid semiannually on June 30 and December 31.Required:1. Determine the price of the bonds at January 1 2013.2. Prepare the journal entry to record their issuance by The Bradford Company on January 1 2013.3. Prepare the journal entry to record interest on June 30 2013 (at theeffective rate).4. Prepare the journal entry to record interest on December 31 2013 (at the effective rate).