OUESTION5 Straton Corporation issued $10,000,000 of 7 percent, 20-year bonds at a d bonds are retired prior to maturity at 103. The book value this time. Straton a method. of the bonds is $9,853,000 at poration amortizes bond premiums using the effective-interest Was the contract rate on the market rate of interest? Explain. bonds at the time of issuance greater or less than the Prepare the journal entry to record the retirement of the bonds. DebitCre Date Account /Explanation Assume that the bonds were redeemed at maturity. Would the total cash interest paid e different if the company used the straight-line method of amortization of premiums? xplain