On February $6,2024,$ there was a quoted bond price of $130\mathrm{.}03$ for Tough Motor Company$$s $7\mathrm{.}45$ percent bonds maturing on July $16,2034.$

Required:

Were the bonds listed at a discount or premium?

multiple choice $1$

Premium

Discount

Does this mean the market interest rate for comparable bonds was higher or lower than $7\mathrm{.}45$ percent?

multiple choice $2$

Higher than $7\mathrm{.}45$ percent

Lower than $7\mathrm{.}45$ percent