Auerbach Inc. issued 4% bonds on October 1, 2016. The bonds have a maturity date of September 30, 2026 and a face value of $300 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2017. The effective interest rate established by the market was 6%.

Aurebach issued the bonds

A. At par

B. At a premium

C. At a discount

D. Cannot be determined from the given information