Homework: Assignment #3 (Chs 5-6) Question 5, P6-10 (similar to) Part 1 of 2 a. Is this bond currently trading at a discount, at par, or at a premuim? Explain. The bond is currently trading... (Select the best choice below.) Suppose a seven-year, $1,000 bond with a 7.55% coupon rate and semiannual coupons is trading with a yield to maturity of 5.76%. a. Is this bond currently trading at a discount, at par, or at a premuim? Explain. b. If the yield to maturity of the bond rises to 6.39% (APR with semiannual compounding), at what price will the bond trade? A. at par because the coupon rate is equal to the yield to maturity B. at a discount because the coupon rate is greater than the yield to maturity C. D. .. > at a premium because the coupon rate is greater than the yield to maturity at a premium because the yield to maturity is greater than the coupon rate. HW Score: 0%, 0 of 15 points O Points: 0 of 1 Save