Suppose a seven-year, $1,000 bond with a 4.19 % coupon rate and semiannual coupons is trading with a yield to maturity of 2.00 %. 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 2.97 % (APR with semiannual compounding), 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 discount because the coupon rate is greater than the yield to maturity D. ... at a premium because the yield to maturity is greater than the coupon rate.

b. If the yield to maturity of the bond rises to 2.97 % (APR with semiannual compounding), at what price will the bond trade? The bond will trade for $_____. (Round to two decimal places.)