Jules issues 4.5%, five-year bonds dated January 1, 2009, with a $230,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $235,160. The annual market rate is 4% on the issue date.

Required:

Is this bond trading at a discount or premium

A.discount

B. premium

Explain why the bond in question is trading at a discount/premium (answer should be less than 20 words).