Bonds do not always sell at par value in the secondary market. If a bond offers a coupon rate that is higher than prevailing market rates, it will sell at a "premium". That means that it is selling at a price that is higher than par value. On the other hand, if the bond has a coupon rate that is lower than prevailing market rates, it will sell at a "discount" which is a price that is lower than par value. The adjustments are made to accommodate investors' required rates of return.

Would you rather purchase a bond at par, premium or at a discount? Please explain your answer.