Norfolk Inc.issued $1,000,000 of 6.5%,eight-year bonds dated June 1,2017,with semiannual interest payments on December 1 and June 1.The bonds were issued on June 1,2017,at 103.375.Norfolk Inc.'s year end is December 31.
a_Were the bonds issued at a premium,a discount,or at par?
b_Was the market rate of interest higher,lower,or the same as the contract rate of interest?
c_If the company uses the straight-line method of amortization,what is the amount of interest expense Norfolk Inc.will show for the year ended December 31,2017?
d_What is the carrying value of the bonds on December 31,2017?

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The Answer of Norfolk Inc.issued $1,000,000 of 6.5%,eight-year bonds dated June 1,2017,with semiannual interest payments on December 1 and June 1.The bonds were issued on June 1,2017,at 103.375.Norfolk Inc.'s year end is December 31.
a_Were the bonds issued at a premium,a discount,or at par?
b_Was the market rate of interest higher,lower,or the same as the contract rate of interest?
c_If the company uses the straight-line method of amortization,what is the amount of interest expense Norfolk Inc.will show for the year ended December 31,2017?
d_What is the carrying value of the bonds on December 31,2017?