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Suppose a 3-year, $1,000 bond with a 4.51% coupon rate and annual coupons is trading with a yield to maturity of 2.93%. a. Is this

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Suppose a 3-year, $1,000 bond with a 4.51% coupon rate and annual coupons is trading with a yield to maturity of 2.93%. 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 3.49% (with annual coupons), at what price will the bond trade? 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.) A. ... at par because the coupon rate is equal to the yield to maturity B. ... at a premium because the coupon rate is greater than the yield to maturity C. ... at a premium because the yield to maturity is greater than the coupon rate. D. ... at a discount because the coupon rate is greater than the yield to maturity b. If the yield to maturity of the bond rises to 3.49% (with annual coupons), at what price will the bond trade? The bond will trade for $ (Round to two decimal places.)

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