Missing information:
A lot of information is missing, but I found several examples with very similar requirements.
For example:
Company, Inc. issued $500,000 of 14%, 10-year bonds payable on January 1, 2018. The market interest rate at the date of issuance was 12%, and the bonds pay interest semiannually.
Answer:
In order to determine the market price of the bonds we must add the present value of the bonds' face value + present value of the coupon payments:
PV of face value = $500,000 / (1 + 6%)²⁰ = $155,902.36
PV of coupon payments = $35,000 x 11.470 (PV annuity factor, 6%, 20 periods) = $401,450
market value of the bonds = $557,352.36
The journal entry to record the issuance of the bonds:
January 1, 2018, bonds are issued at a premium
Dr Cash 557,352.36
Cr Bonds payable 500,000
Cr Premium on bonds payable 57,352.36
