Use the following information to answer questions 1 and 2.

ABC Inc. just issued 10-year bonds at a coupon rate of 6.50%. The bonds make annual payments and have a par value of $1,000. The yield to maturity is 8.50%,

1. What is the bonds current price? Round to the nearest $0.01.

2. Is the bond selling at discount, premium, or par? Please answer with a one-word answer. Either discount, premium, or par.