Suppose a seven-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading with a yield to maturity of 6.75%.

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% (APR with semiannual compounding), what price will the bond trade for?

Suppose a seven-year, $1,000 bond with a(n) 8.00% coupon rate and semiannual coupons is trading with a yield to maturity of 6.75%. 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 7.00% (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 a premium because the yield to maturity is greater than the coupon rate. B. at a discount because the coupon rate is greater than the yield to maturity. C. at par because the coupon rate is equal to the yield to maturity. D. at a premium because the coupon rate is greater than the yield to maturity