In each of the following situations, state whether the bonds will sell at a premium or discount.

a. Han issued \(\$ 200,000\) of bonds with a stated interest rate of 6.5 percent. At the time of issue, the market rate of interest for similar investments was 6 percent.

b. Hall issued \(\$ 300,000\) of bonds with a stated interest rate of 5.5 percent. At the time of issue, the market rate of interest for similar investments was 6 percent.

c. Horne Inc. issued callable bonds with a stated interest rate of 6 percent. The bonds were callable at 101. At the date of issue, the market rate of interest was 6.5 percent for similar investments.