Cases Company Issues $802,000 of 8%,10-Year Debentures on 31 March

Multiple Choice

Cases Company issues $802,000 of 8%,10-year debentures on 31 March 2017.The debentures pay interest on 31 March and 30 September.Which of the following statements is true?

A) If the market rate of interest is 9%,the debentures will issue at par.
B) If the market rate of interest is 9%,the debentures will issue at a premium.
C) If the market rate of interest is 9%,the debentures will issue at a discount.
D) If the market rate of interest is 9%,the debentures will issue above par.