If bonds issued by a corporation are sold at a discount, is the market rate of interest greater or less than the contract rate? The following data relate to a $2,000,000, 8% bond issued for a selected...

If bonds issued by a corporation are sold at a discount, is the market rate of interest greater or less than the contract rate?

The following data relate to a $2,000,000, 8% bond issued for a selected semiannual interest period

(a) Were the bonds issued at a discount or at a premium? (b) What is the unamortized amount of the discount or premium account at the beginning of the period? (c) What account was debited to amortize the discount or premium?