PROBLEM 3 On June 30, 2018, Upton Inc. sold $3,000,000 (face value) of bonds. The bonds are dated June 30, 2018, pay interest annually on June 30, and will mature on June 30, 2021. The following sched

PROBLEM 3 On June 30, 2018, Upton Inc. sold $3,000,000 (face value) of bonds. The bonds are dated June 30, 2018, pay interest annually on June 30, and will mature on June 30, 2021. The following schedule was prepared by the accountant for 2018. Annual Interest to Interest Unamortized Bond Interest Period ha Paid. Expense Amortization Amount Carrying Value $75,000 $2,925,000 $240,000 $263,250 $23,250 51,750 2,948,250 1 Instructions On the basis of the above information, answer the following questions. (Round your answer to the nearest dollar or percent.) 1. What is the stated interest rate for this bond issue? 2. What is the market interest rate for this bond issue?