1. A company issued bonds with a stated interest rate of 9% when the market interest rate is 8%. Would these bonds be issued at a discount or a premium? Explain your answer.
2. Would the company prefer to issue their bonds at a discount, a premium or at face value? Explain.
3. Calculate the bond issue price (how much cash the company would get on issue date) for the following scenarios and state whether it would be issued at a discount, a premium or at face value. (The interest rates showing are the stated interest rates.)

a. $600,000 3% bond issued at 98

b. $150,000 6% bond issued at 105

c. $320,000 9% bond issued at 100