R&R has the following information: Number of 2,500 Par value p$ 1,200 Bonds are 1/1/X1 Bonds are i 1/1/X1 Years to ma 5 Stated inter 6% Effective Ini 8% Interest is July 1 Interest is Jan. 1 2. Will this bond be sold at a premium, discount, or for par value? A. Premium B. Discount C. Par Value 3. What is the initial value (issuance price) of the bonds? 4. What is the journal entry for the 7/1/X1 interest payment? A. Debit Bond Interest Expense for $69,734, Debit Premium on Bonds Payable for $20,266, and Credit Cash for $90,000 B. Debit Bond Interest Expense for $90,000 and Credit Cash for $90,000 C. Debit Bond Interest Expense for $110,266, Credit Discount on Bonds Payable for $20,266, and Credit Cash for $90,000 D. Debit Bond Interest Expense for $220,834, Credit Discount on Bonds Payable for $40,834, and Credit Cash for $180,000