On January 1, 2018, Doctors Credit Union (DCU) issued 7%, 20-year bonds payable with face value of $200,000. The bonds pay interest on June 30 and December 31. Read the requirements Requirement 1. If the market interest rate is 5% when DCU issues its bonds, will the bonds be priced at face value of a premium, or at a discount? Explain The 7% bonds issued when the market interest rate is 5% will be priced at . They are in this market, so investors will pay to acquire the Requirement 2. If the market interest rate is 8% when DCU issues its bonds, will the bonds be prioed at face value at a premium, or at a discount? Explain The 7% bonds issued when the market interest rate is 8% will be priced at . They are in this market, so investors will pay to acquire them o rd using thes e amortization method Record s Requirements. The issue price of the bonds is 93. Journalize the bond transactions. Assume bonds payable w credits. Select explanations on the last line of the journal entry Round you to the new wholedo a. Joumalize the issuance of the bonds on January 1, 2018 Accounts and Accounts and Explanation 1 Debit Date Credit 2018 to Choose from any list of enter any number in the hotels and then continue to the next i Requirements 1. If the market interest rate is 5% when DCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. 2. If the market interest rate is 8% when DCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. 3. The issue price of the bonds is 93. Journalize the following bond transactions: a. Issuance of the bonds on January 1, 2018. b. Payment of interest and amortization on June 30, 2018. c. Payment of interest and amortization on December 31, 2018. d. Retirement of the bond at maturity on December 31, 2037, assuming the last interest payment has already been recorded. Print Done ber in the input fields and then continue to the next