A Bond Was Issued at a Par Value of $1,000

Multiple Choice

A bond was issued at a par value of $1,000 when the interest rate for similar bonds was 8%. Presently, new bonds issued with a similar creditworthiness have a 10% interest rate. Which of the following statements about the bond is most likely to be true?

A) It is currently selling for a premium.
B) It is currently selling at a discount.
C) It is currently selling at par.
D) It is likely to be retired.
E) The bond's coupon rate will increase.