Bond $1$ has a par$/$face value of $$1,000,000$ and coupon rate of $4\%$; it pays interest annually and matures in $8$ years. The current yield to maturity for similar bonds trading in the market is $6\%.$

a$.$ Show calculations to determine the current market value of the bond.

b$.$ Show calculations to identify whether the bond is trading at a premium or a discount.