On January 1, 2015, Nailtique Nail Salon issued $550,000 of 20-year, 8% bonds payable. The bonds were sold for $550,000. The bonds pay interest each June 30 and December 31 and any discount or premium is amortized using effective interest amortization. 1. Fill in the blanks to complete these statements: a. Nailtique Nail Salon's bonds are priced at (express the price as a percentage) _____. b. When Nailtique Nail Salon issued its bonds, the market interest rate was (higher than, lower than, or equal to) _____ 8%. c. The amount of bond discount or premium is $ _____. 2. Record the following transactions: a. Issuance of the bonds payable on January 1, 2015. b. Payment of interest (and amortization of discount or premium, if any) on June 30, 2015. c. Payment of interest (and amortization of discount or premium, if any) on December 31, 2015. Explanations are not required. 3. At what amount will Nailtique Nail Salon report the bonds on its statement of financial position at December 31, 2015