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suppose a seven-year, $1,000 bond with a 9.94% coupon rate and semiannual coupons is trading with a yield to maturity of 695% a. Is this
suppose a seven-year, $1,000 bond with a 9.94% coupon rate and semiannual coupons is trading with a yield to maturity of 695% 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 7.58% 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 coupon rate is greater than the yield to maturity O B..at par because the coupon rate is equal to the yield to maturity ( C. at a discount because the coupon rate is greater than the yield to maturity O 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 7.58% (APR with semiannual compounding), at what price will the bond trade? The bond will trade for (Round to two decimal places.)
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