Deany Company issued $100,000 bonds. The stated rate of interest was 8% and the market rate 9%. Which of the following statements is true?
a. The bonds were issued at a premium.
b. Annual interest expense will exceed the company's actual cash payments for interest.
c. Annual interest expense will be $8,000.
d. Deany Company cannot issue bonds if the market rate is higher than the stated rate.
e. None of the above is correct.