Given the information below, which bond(s) will be issued at a premium?
Bond 1 Bond 2 Bond 3 Bond 4
5% 96 10% 13%
8% 9% 7% 6 10%
Stated Rate of Return Market Rate of Return
a. Bond 3.
b. Bond 2.
c. Bonds 3 and 4
d. Bond 1.