$3.$Redva$,$ Inc. issued $$1,000,000$ of $9\%$ bonds on $1/1/2025.$ The bonds pay interest every six months and will mature in $20$ years. Use the spreadsheet to complete the bond amortization schedule and answer the following questions. Use formulas in cells E$1$ and E$2$ to calculate the present value of the face amount and the present value of the interest payments. $($When those calculations are in place, the amortization schedule will also be complete.$)$ Assume that the market interest rate at the time of issuance was $10\%$ for Redva.

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Required:

a$.$ Be sure the issue price amount is in E$3.$

b$.$ Were the bonds issued at a discount or a premium? Explain why this was the case.

By the end of $2027,$ market interest rates for Redva have risen to $12\%.$ How does the change in interest rates affect recording this bond issue? Explain.