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Homework: FIN 310 Chapter 6 Homework Score: 0 of 4 pts P 6-17 (similar to) 5 of 5 (0 HW Test Suppose a seven-year, $1,000

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Homework: FIN 310 Chapter 6 Homework Score: 0 of 4 pts P 6-17 (similar to) 5 of 5 (0 HW Test Suppose a seven-year, $1,000 bond with an 82% ooupon rute and semiannual coupons is trading with a yield to maturity of 644%. a. Is this bond currently trading at a disoount, at par, or at a premium? Explain. b.lfthe yield to maturity of the bond rises to 7.07% a. Is this bond currently trading at a discount, at par, or at a premium? Explain. (Select the best choice below) O A. Because the yield to maturity is greater than the coupon rate, the bond is trading at par O B. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium O C. Because the yield to maturity is less than the coupon rate, the bond is trading at a premium. O D. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount Click to select your answer and then click Check Answer 10

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