answer a and b

A bond currently trades at a premium (i.e., its price is higher than its face value). A. Explain why the bond must be a coupon bond (i.e., it cannot be a zero-coupon bond). B. Challenging Question: Suppose that the bond's discount rate and coupon rate will remain unchanged until the maturity. Determine whether the bond price one year later will be higher than, lower than, or the same as the current bond. Explain why. Hint: there are three ways to do this question. 1. Use an example. 2. Mathematically prove it using algebra. (recommended) 3. Logically prove it