Cassa & Associates Purchased the Bonds of JayBird

Cassa & Associates purchased the bonds of JayBird. These bonds pay 6% interest semi-annually. The effective rate of interest at the date of investment was 3%. Did Cassa & Associates purchase these bonds at a discount or premium?

A) These bonds were purchased at a discount because the stated rate exceeds the market rate.
B) These bonds were purchased at a premium because the stated rate exceeds the market rate.
C) These bonds were purchased at a discount because the market rate exceeds the stated rate.
D) These bonds were purchased at a premium because the market rate exceeds the stated rate.