The 10 percent bonds issued when the market interest rate is 8 percent will be priced at They are in this market, so investors will pay to acquire them. Requirement 2. If the market interest rate is 13 percent when Yukon Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. The 10 percent bonds issued when the market interest rate is 13 percent will be priced at They are in this market, so investors will pay to acquire them. a. Issuance of the bonds on February 1, 2018. Requirements 1. If the market interest rate is 8 percent when Yukon Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. b. Payment of interest and amortization of premium on July 31, 2018. 2. If the market interest rate is 13 percent when Yukon Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. 3. Assume that the issue price of the bonds is $612,000. Journalize the following bonds payable transactions (round amounts to the nearest dollar): a. Issuance of the bonds on February 1, 2018 b. Payment of interest and amortization of premium on July 31,2018 c. Accrual of interest and amortization of premium on December 31, 2018 d. Payment of interest and amortization of premium on January 31, 2019