Instructions(a) Consider event 1. What are some of the reasons the company may h

Instructions(a) Consider event 1. What are some of the reasons the company may have decided to refinance this short-term debt besides lowering the interest rate?(b) What do you think are the benefits to the investor in purchasing zero-coupon bonds such as those described in event 2? What journal entry would be required to record the payment of these bonds? If financial statements are prepared each December 31 in which year would the bonds have been included in short-term liabilities?(c) Make the journal entry to record the bond issue described in event 3. Note that the bonds were issued on the same day yet one was issued at a premium and the other at a discount. What are some of the reasons that this may have happened?(d) What are the benefits to PepsiCo in having perpetual bonds as described in event 4? Suppose that in the current year the bonds are not redeemed and the interest rate is adjusted to 6% from 7.5%. Make all necessary journal entries to record the renewal of the bonds and the change in rate.