KR Issued Bonds Payable with a Face Amount of $200,000

Multiple Choice

KR issued bonds payable with a face amount of $200,000 and a maturity date ten years from date of issuance.If the bonds were issued at a premium, this indicated that:

A) The effective and stated rates of interest were the same.
B) The stated rate of interest exceeded the effective rate of interest.
C) The effective rate of interest exceeded the stated interest rate.
D) No necessary relationship exists between the two rates.
E) The stated interest rate and the market interest rate were the same.