Cathy Moran, CFA, is estimating a value for an infrequently traded bond with six years to maturity, an annual coupon of 7%, and a single-B credit rating. Moran obtains yields-to-maturity for more liquid bonds with the same credit rating: 5% coupon, eight years to maturity, yielding 7.20%. # 6.5% coupon, five years to maturity, yielding 6.40%.

The infrequently traded bond is most likely trading at:

A. par value.

B. a discount to par value.

C. a premium to par value.