1. Grant Inc. issued $400,000 of 6% bonds on June 30, 2016. The bonds mature in 10 years. For bonds of similar risk and maturity, the market interest rate is 4%. Interest is paid semiannually on December 31 and June 30. (i.e., the first interest payment will be made on December 31, 2016). For all computations, ignore below decimal point. a) Determine whether the company sold the bond at discount or premium b) Determine the price of the bonds at June 30, 2016 and prepare the journal entry to record the issuance of the bonds.