Supposed a 7-year bond with an 8% coupon rate paid semi-annually and the required rate of return is 6%. A par value is RM1,000. Based on the information given, 1. Is the bond is currently trading at a discount, at par, or at a premium? Explain. 2. If the required rate of return rises to 10%, with semi-annual compounding, what is the price will the bond trade for? Explain the relationship between interest rate and bond price.