Discount and premium bonds

Discount bonds and premium bonds 

100,000 bond, 10%, 5 years                  ------ discounted to less than 100,000
100,000 bond, 12% 5 years
Who is going to want to purchase the first bond?
What does stores like Walmart do when something is not selling? They discount it. So the first bond gets discounted.

So when the stated rate is less than the market rate, this is the discount bond.

Now let's say that 100,000, 8%, 5 year duration
and there is another 100,000 10%, 5 year duration.

People will want the first bond. So if the stated rate is greater than the market rate then it is going to be trading at a premium.

So that is how the discount and premiums work.
discounts and premiums do not represent whether the bond is worse or better to buy.