On January 1,2019,JK industries purchased bonds with a face amount of $1 million and a coupon interest rate of 8%. The bonds mature in 10 years and pay coupons annually on December 31 of each year. The market rate of interest on January 1, 2019, for bonds of this type was 6%.JK industries closes its books on December 31 and the bonds are considered Available for Sale. Ignore taxes. 1. At what price were the bonds issued? You can use the price or net present value function in Excel to compute the value. a. Using the effective interest method, prepare an amortization schedule in Excel that includes the interest income, amortization, and bond carrying value for the life of the bond. b. Assume the credit risk of the bonds stays constant and interest rates do not change during 2019. Record all the necessary entries for the bonds during 2019. c. Now assume the credit risk of the bonds stays the same but at the end of 2020 the market rate of interest for bonds of this type changes to 4%. Using Excel, estimate the fair value of the bonds on 12/31/2020. Also use Excel to prepare a new amortization schedule based on the new fair value. d. Record all the necessary entries related to the bonds for 2020 . e. Assume the credit risk of the bonds stays constant and interest rates do not change during 2021. Record all the necessary entries related to the bonds for 2021. f. What is the value of the bonds recognized on the balance sheet on 12/31/2021