For each of the following independent situations, determine:
(a) Whether the bonds sold at face (maturity) value, at a premium (more than face value), or at a discount (less than face value), and
(b) Whether interest expense recognized each year for the bonds was less than, equal to, or Greater than the amount of interest paid on the bonds.
a. Bonds with a stated rate of 7% were sold to yield an effective rate of 9%.
b. Bonds with a stated rate of 10% were sold to yield an effective rate of 8%.
c. Bonds with a stated rate of 6% were sold to yield an effective rate of 6%.