915-30A On March 1, 2007, Educators Credit Union (ECU) issued 6%, 20-ver2 bonds payable with maturity value of $300,000. The bonds pay interes on February 28 and August 31. ECU amortizes bond count by the straight-line method. premium and dis 1. If the market interest rate is 5% when ECU issues its bonds, will the bonds be priced at maturity (par) value, at a premium, or at a dis count? Explain. (p. 739) 2. If the market interest rate is 7% when ECU issues its bonds, will the bonds be priced at par, at a premium, or at a (p. 736) discount? Explain. 3. The issue price of the bonds is 98.Journalize the following bond transactions: a. Issuance of the bonds on March 1, 2007. (pp. 744-745) b. Payment of interest and amortization of discount on August 31 2007. (pp. 744-745) 2007. (pp. 744-745) 2008. (pp. 744-745) c. Accrual of interest and amortization of discount on December 31, d. Payment of interest and amortization of discount on February 28