Consider the 8.125% notes due 2010. Assume that Rite Aid issued these notes on May 1, 2003 and that the company pays interest on the last day of April each year. i. According to a press release issued by Rite Aid at the time of the issuance, the proceeds of the notes issue were 98.688% of the face value of the notes. Prepare the journal entry that Rite Aid must have made when these notes were issued. ii. At what effective annual rate of interest were these notes issued? iii. Assume that Rite Aid uses the effective interest rate method to account for this debt. Use the guidance for the table that follows to prepare an amortization schedule for these notes. Use the last column to verify that each year's interest expense uses the same interest rate even though the expense changes. Interest Payment Interest Expense Date Bond Discount Amortization Net Book Value of Debt Effective Interest Rate $ 355,276.80 $ 29,250 May 1, 2003 May 1, 2004 May 1, 2005 May 1, 2006 May 1, 2007 May 1, 2008 May 1, 2009 May 1, 2010