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Suppose a seven-year, $1,000 bond with a 5.54% coupon rate and semiannual coupons is trading with a yield to maturity of 2.79% a. Is this

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Suppose a seven-year, $1,000 bond with a 5.54% coupon rate and semiannual coupons is trading with a yield to maturity of 2.79% 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 3.06% (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.) O A. ... at a premium because the yield to maturity is greater than the coupon rate. O B. at a premium because the coupon rate is greater than the yield to maturity OC. at a discount because the coupon rate is greater than the yield to maturity OD at par because the coupon rate is equal to the yield to maturity

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