Note 18 discloses the fair value of Mitsubishi Electrics financial instruments, including its long-term debt. According to paragraph (d) Long-term debt, Mitsubishi Electric calculates the fair value of its long-term debt by discounting the future cash flows associated with each debt instrument at its current borrowing rate (i.e., the current market rate). In contrast, the carrying amount of debt reflected on Mitsubishi Electrics balance sheet is determined by discounting these future cash flows using the market rate at the time of the issuance of each debt instrument.

i. Compare the carrying amount and estimated fair value of Mitsubishi Electrics long-term debt at March 31, 2010. Which of these two amounts is higher? What does this relation imply about the companys current market rate is it higher or lower, on average than the market rate at issuance?