Determine bond prices at par, discount, or premium
Response to the following problem:
Determine whether the following bonds payable will be issued at par value, at a premium, or at a discount:
a. The market interest rate is 5%. Haylee Corp. issues bonds payable with a stated rate of 6 ½ %.
b. Samuel, Inc., issued 5% bonds payable when the market rate was 5 ¾ %.
c. Houston Corporation issued 3% bonds when the market interest rate was 3%.
d. Ortloff Company issued bonds payable that pay stated interest of 7 ¼ %. At issuance, the market interest rate was 7 ¾ %.