I'm not sure that 2b answer is correct

Part 1: Notes Payable Selected information for Morgan Inc for a recent fiscal year is presented below (dollar amounts in millions): Note Reported Book Value, 6/30/2018 Reported Book Value, 6/30/2019 Stated Interest Rate Effective Interest Rate October 1, 2020 1,000 1,000 3.00% 3.14% May 1, 2023 1,000 1,000 2.38% 2.47% December 6, 2028 2,044 1,993 3.13% 3.22% Required: (1) Are the May 1, 2023 notes recorded at a discount or a premium? Why? Notes are recorded at a discount, as the reported book value is less than its book plus interest (2) Assume that Moody's reports that the October 1, 2020 notes were originally rated as Aaa. (a) If Moody's lowers the rating to Aal (which signals an increase in risk), what is the effect on the effective interest rate? Would it be higher, lower or the same? (b) If the notes had been secured by collateral, would the effective interest rate have been higher, lower, or the same? (a) Effective interest will increase pursuant to lower ratings by Moody's to reflect the increase in risk, as the investor will demand high interest for the high amount of risk (b) If the notes had been secured by collateral, the effective interest rate would still be higher though not much as in answer (2a) (3) Are the December 6, 2028 notes recorded at a discount or a premium? Why? (b) What explains the decrease in the notes from the beginning to the end of the fiscal year? (a) 6 Dec 2028 notes recorded at a premium as the value of the notes would be approximately 1300 by 6 Dec 2028 with the effective interest rate of 3.22%, however it is recorded at 2044 (b) Decrease in notes explains increase in effective interest rate