On December 31, 2009, Austin Enterprises issued $15,000 worth of 12% bonds at 93. These are 10-year bonds with interest paid annually on December 31. 1. What are the interest payments for the first two years? 2. Was the market interest rate higher or lower than 12% at the date of issue? 3. Will the interest expense be higher or lower than the interest payment? 1. What are the interest payments for the first two years? Select the formula and calculate the annual interest payment that will be made on December 31, 2010, and December 31, 2011, for the first two years. x X Time = Annual interest payment 2. Was the market interest rate higher or lower than 12% at the date of issue? The market interest rate was L V than 12% at the date of issue. 3. Will the interest expense be higher or lower than the interest payment? The interest expense will be than the interest payment