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On September 1, 2021, Bear Corporation issued $ 1,000,000, 6%, 10-year bonds. Interest is payable annually with the first payment due on September 1, 2022. Instructions F a) For each of the following market rate assumptions, identify whether Bear would issue the bonds at face value, at a discount, or at a premium: (1) 5%, (2) 6%, and (3) 7%. (1) Market rate of interest of 5% is lower than the contractual rate = Premium (2) Market rate of interest of 6% is equal to the contractual rate = Discount (3) Market rate of interest of 7% is higher than the contractual rate = b) Provide the appropriate journal entry on September 1, 2021 to record the issuance of the bonds if the market rate of interest is 7%. Round your answer to the nearest dollar. (Type in the account names.) Sep. 1 Calculation with PV tables: (factors use 5 decimals) 1. PV of the maturity value = $