On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: Cash Interest Amortization Date January 1, Year 1 End of Year 1 End of Year 2 End of Year 3 End of Year 4 Balance $ 42,734 42,565 42,387 $ 2,562 $ 2,393 $ 169 188 ? 2363 ? 2,363 138 ? 42,000 42,600 4. Were the bonds issued at a premium or a discount? If so, what was the amount of the premium or discount? X Answer is complete but not entirely correct. Premium $ 6 6. What is the coupon rate? (Enter your answer as a percentage rounded to 1 decimal place (i.e. 0.123 should be entered as 12.3).) & Answer is complete but not entirely correct. Coupon Rate 6.0 % 7. What was the annual market rate of interest on the date the bonds were issued? (Enter your answer as a percentage rounded to 1 decimal place (i.e. 0.123 should be entered as 12.3).) & Answer is complete but not entirely correct. Market rate of interest 8. What amount of interest expense will be reported on the income statement for Year 2 and Year 3? (Round your final answers to nearest whole dollar amount.) & Answer is complete but not entirely correct. $ Year 2 Year 3 Interest Expense 2,562 X 2,562 X 9. What amount will be reported on the balance sheet at the end of Year 2 and Year 3? Answer is complete but not entirely correct. Year 2 Year 3 $ $ Bonds Payable 42,565 42,387 X