S9-7. (Learning Objective 2: Determining bond prices at par, discount, or premium) Determine whether the following bonds payable will be issued at maturity value, at a premium, or at a discount:

a. The market interest rate is 5%. Esme Corp. issues bonds payable with a stated rate of 4.5%.

b. Trinity Corp. issued 5% bonds when the market interest rate was 5%.

c. Ottawa Company issued bonds payable that pay stated interest of 6%. At issuance, the market interest rate was 7.25%.

d. Howler, Inc., issued 7% bonds payable when the market rate was 6.75%.