Suppose a seven-year, $1,000 bond with a 11.17% coupon rate and semiannual coupons is trading with a yield to maturity of 10.04%

1. Is the bond currently trading:

a. at a discount because the coupon rate is greater than the yeild to maturity?

b. at par because the coupon rate is equal to the yield to maturity?

c. at a premium because the coupon rate is greater than the yield to maturity?

d. at a premium because the yeild to maturity is greater than the coupon rate.

2. If the yield to maturity of the bond rises to 10.67% (APR with semiannual compounding), at what price will the bond trade?