Bonds payable—various issues On July 1, 2016, $12 million face amount of 7%, 10-year bonds were issued. The bonds pay interest on an annual basis on June 30 each year. The market interest rates were...

Bonds payable—various issues On July 1, 2016, $12 million face amount of 7%, 10-year bonds were issued. The bonds pay interest on an annual basis on June 30 each year. The market interest rates were slightly higher than 7% when the bonds were sold.
Required:
How much interest will be paid annually on these bonds?
Were the bonds issued at a premium or discount? Explain.
Will the annual interest expense on these bonds be more than, equal to, or less than the amount of interest paid each year? Explain your answer.