Question 2 -20 SGIT Corporation Mar. 4 Declare share cash divi and the payme Question 5 - 20 Marks Mar. 28 Paid On April 1, 2020, Fratello Inc. issues 7 percent, 10-year bonds payable with a maturity value of $3,000,000. The bonds pay interest on March 31 and September 30, and Fratello Inc, amortizes premiums and discounts by the straight-line method Apr. 20 Dec 29, with diss May 31 se Jun. 17 average Nov. 14 Required: 1. If the market interest rate is 9 percent when Fratello Inc. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain 2. If the market interest rate is 5 percent when Fratello Inc. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain 3. Assume the issue price of the bonds is 103.00. Joumalize the following bonds payable transactions a: Issuance of the bonds on April 1, 2020 b. Payment of interest and amortization of the premium on September 30, 2020, c. Accrual of interest and amortization of the premium on December 31, 2020, the year- end d Payment of interest and amortization of the premium on March 31, 2021 4. Report interest payable and bonds payable as they would appear on the Fratello Inc. balance sheet at December 31, 2020 Requis