Assume that on April 1, 2018, Alaska Corp. issues 5 percent, 10-year bonds payable with a maturity value of $400,000. The bonds pay interest on March 31 and September 30, and Alaska amortizes any premium or discount using the straight-line method, Alaska's fiscal year end is December 31 Read the requirements: Requirement 1. If the market interest rate is 4 percent when Alaska Corp. issues its bonds will the bonds be priced at par, at a premium, or at a discount? Explain The 5 percent bonds issued when the market interest rate is 4 percent will be priced at They are in this market, so investors will pay to acquire them Requirements X 1. If the market interest rate is 4 percent when Alaska Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. 2. If the market interest rate is 6.5 percent when Alaska Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. 3. Assume that the issue price of the bonds is $416,000. Journalize the following bonds payable transactions (round amounts to the nearest dollar): a. Issuance of the bonds on April 1, 2018 b. Payment of interest and amortization of premium on September 30, 2018 c. Accrual of interest and amortization of premium on December 31, 2018 d. Payment of interest and amortization of premium on March 31, 2019