Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 2011, Smiley issued $23,100,000 of five-year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of $24,036,717. Interest is payable semiannually on April 1 and October 1. Required: a. Journalize the entries to record the following. Refer to the Chart of Accounts for exact wording of account titles. 1 Issuance of bonds on April 1, 2011. 2 First interest payment on October 1, 20Y1, and amortization of bond premium for six . months, using the straight-line method. (Round to the nearest dollar.) b. Explain why the company was able to issue the bonds for $24,036,717 rather than for the face amount of $23,100,000. C. The bonds sell for more than their face amount because the market rate of interest is___ the contract rate of interest. Investors willing to pay more for bonds that pay a higher rate of interest (contract rate) than the rate they could earn on similar bonds (market rate)