Discount:

Bond is a debt instrument.

Bond is an investment.

Increases interest expense.

Increases interest revenue

Discount represents extra interest paid to bondholders to bring the bond’s stated interest rate up to a higher market interest rate.

Premium:

Bond is a debt instrument.

Bond is an investment.

Reduces interest expense.

Reduces interest Revenue

Premium represents a reduction in the interest to bring the bond’s stated interest rate down to a lower market interest rate