Calculate the issue price of a $1,500,000 bond issue and preparing the journal entries of the issuance and first years interest payments using the effective interest method

The first is a 12 year, 8 percent bond issue with a market interest rate of 12 percent.

The issue price is actually the present value of the bond, and the future value is the par value.
In a financial calculator input:
FV= 1500,000
Payment every period (6 months) = FV * bond rate / 2 = 1500,000*8%/2 = 60,000
Number of periods = 12 years * 2 = 24
Interest rate each period = 12% / 2 = 6%
Then by the calculator or EXCEL "= -PV(6%,24,60000,1500000)" we can calculate PV = $1,123,489.27.

The second is a 12 year, 8 percent bond issue with a market interest rate of 6 percent.

In a financial calculator input:
FV= 1500,000
Payment every period (6 months) = FV * bond rate / 2 = 1500,000*8%/2 = 60,000
Number of periods = 12 years * 2 = 24
Interest rate each period = 6% / 2 = 3%
Then by the calculator or EXCEL "= -PV(3%,24,60000,1500000)" we can calculate PV = $1,754,033.13.