Suppose a seven-year, $1,000 bond with a 11.63 % coupon rate and semiannual coupons is trading with a yield to maturity of 10.55%.

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 yield to maturity is greater than the coupon rate.

C.

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

D.

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