2. Suppose a seven-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading with a yield to maturity of 6.75%. (a) What is the dollar amount of each coupon payment? (b) Is this bond currently trading at a discount, at par, or at a premium? Explain. (c) If the yield to maturity of the bond rises to 7% (APR with semiannual compounding), what price will the bond trade for?

Please use formulas and show work