- I have an investment in Microsoft corporate bonds. The bonds will mature in 10 years and have a coupon rate of 3%. When I purchased the bonds the market rate of interest was 3.025%. Did I purchase the bonds at a discount or a premium? Explain your answer.

- I now want to sell my investment in bonds and the market rate of interest is 2.875%. Will I be able to sell the bonds at a premium to what I paid for them or at a discount and explain your answer.