P15-37B On April 1, 2006, US Ultracom issued 7%, 10-year bonds payable with discount by the maturity value of $400,000. The bonds pay interest on March 31 and September 30, and US Ultracom amortizes premium and straight-line method. Requirements 1. If the market interest rate is 6 1/2% when US Ultracom issues its s be priced at maturity (par) value, a bonds, will the bond mium, or at a discount? Explain. (pp. 735-736) t a pre- 2. If the market interest rate is 8% when US Ultracom issues its bonds will the bonds be priced at pat, at a premium, or at a discount? Explain. (pp. 735-736) 3. Assume that the issue price of the bonds is 101. Journalize the fol lowing bonds payable transactions: a. Issuance of the bonds on April 1, 2006. (pp. 744-745) b. Payment of interest and amortization of premium on September 3 2006. (pp. 744-745) 2006. (pp. 744-745) 2007. (pp. 744-745) c. Accrual of interest and amortization of premium on December 3 d. Payment of interest and amortization of premium on March 31