At the beginning of the year, Warner Company issued $1,000,000 of 6% coupon, effective-interest method of amortization is to be used. 10-year bonds. The a. (3points) Suppose the market rate of interest at the time of issue was 8%. P schedule for the first year and determine how much interest expense the firm shou income statement. repare an amortization YearBeginning Interest Expense Carrying Amount Interest Payment AmortizationEnding Carrying Amount (3 points) Suppose instead the market rate of interest at the time of issue was 4%. Prepare an amortization schedule for the first year. b. Amortization Ending Carrying Interest Payment YearBeginning Interest Expense Amount Carrying Amount from part (b) above, suppose after 4 years the market interest rates have risen (2 points) Following to 7%. An analyst analyzing Warner's balance sheet and only uses the carrying amount reported on the balance sheet to analyze the company's financial position would most likely: (circle one) c. i. Overestimate Warner's economic liabilities ii. Underestimate Warner's economic liabilities ii Accurately estimate Warner's economic liabilities