Required:a. Assume that market interest rates were slightly lower than 11% when the bonds were sold. Would the proceeds from the bond issue have been more than less than or equal to the face amount? Explain.b. Independent of your answer to part a assume that the proceeds were $1080000. Use the horizontal model (or write the journal entry) to show the effect of issuing the bonds.c. Calculate the interest expense that Kaye Co. will show with respect to these bonds in its income statement for the fiscal year ended September 30 2010 assuming that the premium of $80000 is amortized on a straight-line basis.