The correct answer would be the third option. A bond is issued at premium when a bond's stated interest rate is higher than the market interest rate. It is a type of bond wherein it offers a rate that is higher than what is the present interest rates. It is a bond usually issued in nations like Canada and United Kingdom. In UK, these bonds are deemed as lottery bonds which is being issued by the National Savings and Investment of their government. In Canada, on the other hand, it is called as Canada Premium bond which offers a high interest rate at the moment it is issued as compares to a Canada Savings Bond.