Un January 1, 2018, Educators Credit Union (ECU) issued 8%,20-year bonds payable with face value of $800,000. The bonds pay interest on June 30 and December 31. Read the requirements. Requirement 1. If the market interest rate is 5% when ECU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. The 8% bonds issued when the market interest rate is 5% will be priced at . They aro. in this market, so investors will pay Requirement 2. If the market interest rate is 9% when ECU issues its bonds, will the bonds be priced at lace value, at a premian, or at a disccurs? Explan. The 8% bonds issued when the market interest rate is 9% will be priced at . They are in this market, so investors will pay to acquire them. Requirement 3. The issue price of the bonde is 98, Joumalize the bond transactions. (Assume bonds payable are amortized using the straight-line amorizaton msehod. Fiecord debits frat then credits. Seloct explanations on the last line of the journal entry. Round your answers to the nearest whole dollar) a. Journalize the isbuarce of the bonds on January 1,2018 . b. Journalize the poyment of interest and amortization on June 30,2018 b. Journalize the payment of interest and amortization on June 30,2018. c. Journalize the payment of interest and amortization on December 31,2018. Requirements 1. If the market interest rate is 5% when ECU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. 2. If the market interest rate is 9% when ECU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. 3. The issue price of the bonds is 98 . Joumalize the following bond transactions: a. Issuance of the bonds on January 1,2018. b. Payment of interest and amortization on June 30,2018 . c. Payment of interest and amortization on December 31,2018 . d. Retirement of the bond at maturity on December 31, 2037, assuming the last interest payment has already been recorded