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a . Is this bond currently trading at a discount, at par, or at a premium? Explain. ( Select the best choice below. ) A
a Is this bond currently trading at a discount, at par, or at a premium? Explain. Select the best choice below.
A Because the yield to maturity is greater than the coupon rate, the bond is trading at par.
B Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium.
C Because the yield to maturity is less than the coupon rate, the bond is trading at a premium.
D Because the yield to maturity is less than the coupon rate, the bond is trading at a discount.
b If the yield to maturity of the bond rises to APR with semiannual compounding what price will the bond
trade for?
The new price of the bond is $Round to the nearest cent.
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