In each of the following situations, state whether the bonds will sell at a premium or discount. Situations Premium or Discount Valley issued $400,000 of bonds with a stated interest rate of 7 percent. At the time of issue, the market rate of interest for similar investments was 6 percent. Spring issued $200,000 of bonds with a stated interest rate of 6 percent. At the time of issue, the market rate of interest for similar investments was 8 percent. River Inc. issued $150,000 of callable bonds with a stated interest rate of 6 percent. The bonds were callable at 102. At the date of issue, the market rate of interest was 7 percent for similar investments