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Suppose a seven-year, $1,000 bond with a 8.62% coupon rate and semiannual coupons is trading...

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Suppose a seven-year, $1,000 bond with a 8.62% coupon rate and semiannual coupons is trading with a yield to maturity of 6.18%. 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 6.24% (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. B. at par because the coupon rate is equal to the yield to maturity at a premium because the yield to maturity is greater than the coupon rate. at a premium because the coupon rate is greater than the yield to maturity ... at a discount because the coupon rate is greater than the yield to maturity C. D. b. If the yield to maturity of the bond rises to 6.24% (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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