18. You issue $250,000 worth of 10 year, 9% bonds when the market rate was 6%, they are issued at $302,500. Interest is paid annually. Answer the following questions: (15 Points)

A. Are the bonds issued at face value, a premium, or discount? Why? (5 Points)

B. What is the interest payment in year 1? (5 Points)

c. What is the interest expense in year 1? (5 Points)