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Suppose a seven-year, $1,000 bond with a 5.42% coupon rate and semiannual coupons is trading with a yield to maturity of 3.29%. a. Is this

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Suppose a seven-year, $1,000 bond with a 5.42% coupon rate and semiannual coupons is trading with a yield to maturity of 3.29%. 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 4.05% (APR with semiannual compounding), at what price will the bond trade

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