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Suppose a seven-year, $1,000 bond with an 8.2% coupon rate and semiannual coupons is trading with a yield to maturity of 6.58%. a. Is this

image text in transcribedimage text in transcribed Suppose a seven-year, $1,000 bond with an 8.2% coupon rate and semiannual coupons is trading with a yield to maturity of 6.58%. 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 7.09% (APR with semiannual compounding), what price will the bond trade for? Because the yield to maturity is greater than the coupon rate, the bond is trading at par. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premiun

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