Presented below is information taken from a bond amortization schedule with related fair values provided. These bonds are managed to profit from changes in market interest rates. 31/12/17 31/12/18 31/12/19 Amortized cost 92,500 97,773 103,150 Fair Value 94,350 95,817 103,150 Required:1. Indicate whether the bonds were purchased at a discount or premium. Explain why you think so.