Fair Value of Bonds On 1/1/2017 Blue issued 2-year, 10%, $10,000 bonds for $10,363. Interest is paid every 6/30 and 12/31. The effective rate at issuance was 8%. Required: 1. Present the amortization table. 2. Assume that due to changes in Blue's credit risk, the effective rate changed to 14% on 6/30/2017. Record journal entries for 6/30/2017. 3. Further assume that due to changes in the general market rate, the effective rate changed to 12% on 12/31/2017. Record journal entries for 12/31/2017 4. What is the effect of the bonds on the 2017 income