Bond prices depend on the market rate of interest, stated rate of interest, and time. Determine whether the following bonds payable will be issued at face value, at a premium, or at a discount: b. c. d. The market interest rate is 8%. Idaho issues bonds payable with a stated rate of 7.75%. Austin issued 9% bonds payable when the market interest rate was 8.25%. Cleveland's Cars issued 10% bonds when the market interest rate was 10%. Atlanta's Tourism issued bonds payable that pay the stated interest rate of 8.5%. At issuance, the market interest rate was 10.25%. a. The market interest rate is 8%. Idaho issues bonds payable with a stated rate of 7.75%