Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $300 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 6%. Auerbach issued the bonds:

Multiple Choice

1. At par.

2. At a premium.

3. At a discount.

4. Cannot be determined from the given information.