On February 28,2021 , Marlin Corp. issues 8%,10-year bonds payable with a face value of $600,000. The bonds pay interest on February 28 and August 31 . The company amortizes bond discount using the straight-line method. Read the requirements. Requirement 1. If the market interest rate is 7% when Marlin Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. The 8% bonds issued when the market interest rate is 7% will be priced at They are in this market, so investors will pay to acquire them. Requirements 1. If the market interest rate is 7% when Marlin Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. 2. If the market interest rate is 9% when Marlin Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. 3. Assume that the issue price of the bonds is 99 . Journalize the following bonds payable transactions. a. Issuance of the bonds on February 28,2021 b. Payment of interest and amortization of the bond discount on August 31,2021 c. Accrual of interest and amortization of the bond discount on December 31,2021 (fiscal yearend) d. Payment of interest and amortization of the bond discount on February 28,2022