Johnson Company issued $50,000 bonds payable, 9% annual interest, maturity in ten years. The bonds were sold for $48,000. Based on this information, what do we know about the market rate for these bonds when they were sold?

1 The market rate now is higher than it was at the time of sale.

2 The market rate of interest was the same as the 9% rate carried by the bonds.

3 There is no specific market interest rate for bonds when they are sold.

4 The market rate for the bonds was lower than the 9% rate carried by the bonds.

5 None of the above