Phan Company issues $800,000 of 7%, 10-year bonds on March 31, 2013. The bond pays interest on March 31 and September 30. Which of the following statements is true?

A) If the market rate of interest is 8%, the bonds will issue at a premium.

B) If the market rate of interest is 8%, the bonds will issue at a discount.

C) If the market rate of interest is 8%, the bonds will issue at par.

D) If the market rate of interest is 8%, the bonds will issue above par.