Please answer the 3 questions about chapter 10 bonds:

1. Assume that Peach Tree Software sold bonds with a face value of $100,000 for $104,000. Was the market interest rate equal to, less than or greater than the bonds contractual interest rate? Explain.

2. Assume that Peach Tree Software sold bonds with a face value of $100,000 for $96,000. Was the market interest rate equal to, less than or greater than the bonds contractual interest rate? Explain.

3. If the bond payable account has a balance of $700,000 and the Discount on bonds payable has a balance of $36,000, what is the carrying amount of the bonds? Was this bond originally sold at a premium, discount or face value? Please explain how you knew your answer.