Bonds issued at a Discount Suppose Katakis issues $500,000 of 6 percent, five-year bonds at 95 on January 1, 2015, when the market interest rate is 7 percent and the interest is to be paid on January 1 and July 1 of each year. 1) Record the issuance of bond at discount 2) Record the first interest payment on 7/1/15 Bonds issued at a Premium Suppose Katakis issues $500,000 of 6 percent, five-year bonds for $325,000 on January 1, 2015, when the market interest rate is 5 percent and the interest is to be paid on January 1 and July 1 of each year. 1) Record the issuance of bond at premium 2) Record the first interest payment on 7/1/15