On January 2012, Lower Under Co announced an offer to issue bonds with a $200,000 par value, a 10% annual contract rate with interest payable semi-annually, and with a three-year life to gain some liquidity given the current market conditions. Interest payments are due on April 1 and October 1 of each year. Lower Under agrees to make six payments over the three years of the bond. Bonds are issue on April 1st 2012, maturity date is April 1, 2015 and the market rate on April 1st 2012 is 8%. Lower Under Co. closes its books annually on December 31 and uses the effective interest method. Indicate which of the following statements is true: Multiple Choice 1.bonds were issued with a premium equal or larger than $10,000 2.bonds were issued with a discount equal or larger than $10,000 3.bonds were issued with a discount equal or smaller than $9,999 4.bonds were issued with a premium equal or smaller than $9,999 5.bonds were issued at par