Vanessa Garza 2/18/19 1:19 AM FIN 3013 Section 002 Spring 2019 (Nguyen) (1) Homework: HW2 - Interest Rate and Bonds Score: 0 of 1 pt P 6-17 (similar to) Save 23 of 25 (22 complete) HW Score: 88%, 22 of 25 pts Question Help Suppose a seven-year, $1,000 bond with a 7.8% coupon rate and semiannual coupons is trading with a yield to maturity of 658% 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 7.34% APR with semiannual compounding, what price will he ona rade for? a. Is this bond currently trading at a discount, at par, or at a premium? Explain. (Select the best choice below.) OA. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium. B. Because the yield to maturity is less than the coupon rate, the bond is trading at a premium. C. Because the yield to maturity is greater than the coupon rate, the bond is trading at par D. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount b. If the yield to maturity of the bond rises to 7.34% (APR with semiannual compounding, what price will he bondtade for? The new price of the bond is S (Round to the nearest cent.) Enter your answer in the answer box and then click Check Answer. Clear All Check Answer remaining