PROBLEMC2o PoiNTS Assume that on April 1, 2008, Roland Corp. issues 8%, 10-year bonds payable with a maturity value of $400,000. The bonds pay interest on March 31 and September 30, and Roland amortizes any premium and discount by the straight-line method. Roland's fiscal year-end is December 31. Requirements 1. If the market interest rate is 7 1/2% when Roland issues its bonds, will the bonds be priced at maturity value, at a premium, or at a discount? Explain. 2. If the market interest rate is 9% when Roland issues its bonds, will the bonds be priced at maturity, at a premium, or at a discount? Explain. lowing bonds payable transactions: a. Issuance of the bonds on April 1,2008. b. Payment of interest and amortization of premium on Septem- 3. Assume that the issue price of the bonds is 101. Journalize the fol- ber 30, 2008. c. Accrual of interest and amortization of premium on December 31, d. Payment of interest and amortization of premium on March 31, Rean 2 2008. 2009