Answer:
bond stated interest rate is below the market rate of interest.
Explanation:
A bond sells at a discount if its face value is below par. For example, if par value is $1000 and the price is $950, the bond is selling at a discount
A bond is selling at a discount if the bond stated interest rate is below the market rate of interest.
A bond is selling at a premium if its interest rate is above the market rate of interest.
