What factors should be considered in determining the issue price of a debenture. (2 marks) b) On 1 July 2018 Bombo Ltd issues $2 million in six-year debentures that pay interest each six months at a coupon rate of 8 per cent. At the time of issuing the securities, the market requires a rate of return of 6 per cent. Interest expense is determined using the effective-interest method. Required: (i) Determine the issue price of the debenture. (2 marks) (ii) Provide the journal entries at:

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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What factors should be considered in determining the issue price of a debenture. (2 marks) b) On 1 July 2018 Bombo Ltd issues $2 million in six-year debentures that pay interest each six months at a coupon rate of 8 per cent. At the time of issuing the securities, the market requires a rate of return of 6 per cent. Interest expense is determined using the effective-interest method. Required: (i) Determine the issue price of the debenture. (2 marks) (ii) Provide the journal entries at: 

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