Assume that on April 12008 Roland Corp. issues 8% 10-year bonds payable with a maturity value of $400000. The bonds pay interest on March 31 and September 30 and Roland amortizes any premium and discount by the straight-line method. Rolands fiscal year-end is December 31.Requirements:1) If the market interest rate is 7 1/2% when Roland issues its bonds will the bonds be priced at maturity value at a premium or at a discount?2) If the market interest rate is 9% when Roland issues its bonds will the bonds be priced at maturity premium or discount?3) Assume that the issue price of the bonds is 101. Journalize the following bonds payable transactions:A) Issuance of the bonds on April 1 2008.B) Payment of interest and amortization of premium on September 30 2008.C)Accrual of interest and amortization of premium on December 31 2008.D) Payment of interest and amortization of premium on March 31 2009.