On October 1, 2018, a firm issued $200,000 of 9% bonds. The bonds were dated January 1, 2018. Interest is paid annually on 12/31. A total of $210,500 in cash was received, which included accrued interest. What amount of premium or discount is associated with these bonds?

Select one:

a. $10,500 premiumb. $1,500 premiumc. $2,000 premiumd. $3,000 discounte. $13,500 premium