A bond consists of two types of cash flows: a, which is the amount due at maturity, and b, which is the amount due at regular intervals. If your stated/face interest rate is equal to the market rate of interest, we refer to this as issuing the bond at c.

Select one:

a. a is the interest payment, b is the market interest rate, and c is bogey.

b. a is the interest payment, b is the principal, and c is the premium.

c. a is the principal, b is the interest payments, and c is par.

d. a is the principal, b is the compounded payments, and c is the discount.