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215.5+232 3. Bond Pricing. Suppose a seven-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading with a yield to maturity of

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215.5+232 3. Bond Pricing. Suppose a seven-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading with a yield to maturity of 7%. (8 points) a. Is this bond currently trading at a discount, at par, or at a premium? Explain b. If the yield to maturity of the bond rises to 8%, what price will the bond trade for

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