Suppose a seven-year, $1,000 bond with a 7.8% coupon rate and semiannual coupons is trading with a yield to maturity of 6.73%. a. Is this bond currently trading at a discount, at par, or at a premium? Explain. b. If the yield to maturity of the bond rises to 7.01% (APR with semiannual compounding), what price will the bond trade for? a. Is this bond currently trading at a discount, at par, or at a premium? Explain. (Select the best choice below.) O A. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium. O B. Because the yield to maturity is less than the coupon rate, the bond is trading at a premium. O C. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount. O D. Because the yield to maturity is greater than the coupon rate, the bond is trading at par. b. If the yield to maturity of the bond rises to 7.01% (APR with semiannual compounding), what price will the bond trade for? The new price of the bond is $ (Round to the nearest cent.)