A bond holder has a bond that has a face value of $$1,000,$ an $8\%$ coupon paid annually and $20$ years to maturity. Since the person bought the bond, interest rates on similar bonds with the same risk have increased. As such, the bond will currently be trading at: a premium to face value

face value

a discount to face value

the bond could be trading at face value, a premium to face value or a discount to face value.