EXERCISE 10-16 SELLING BONDS AT PAR, PREMIUM, OR DISCOUNT In each of the following independent cases, state whether the bonds were issued at par. a premium, or a discount. Explain your answers.

(a) Pop-up Manufacturing sold 1 .500 of its S 1 .000, 8% stated-rate bonds when the market rate was ^%.

(b) Splendor. Inc.. sold 500 of its S2,000, 8V/o bonds to yield 9%. *

(c) Cards Corporation issued 1,000 of its 9%, SI 00 face value bonds at an effective rate of9M%. I

(d) Floppy, Inc., sold 3,000 of its 10% bonds with a face value of S2,500 at a time when the market rate was 9%. j j

(e) Cintron Co. sold 5.000 of its 12% contract-rate bonds with a stated value of S 1 .000 at an effective rate of 12%.