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

a. Stokes issued \(\$ 200,000\) of bonds with a stated interest rate of 8 percent. At the time of issue, the market rate of interest for similar investments was 7 percent.

b. Shaw issued \(\$ 100,000\) of bonds with a stated interest rate of 8 percent. At the time of issue, the market rate of interest for similar investments was 9 percent.

c. Link Inc., issued callable bonds with a stated interest rate of 8 percent. The bonds were callable at 104. At the date of issue, the market rate of interest was 9 percent for similar investments.