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Homework: Lab 6 Save Score: 0.5 of 1 pt 7 of 15 (10 complete) HW Score: 55%, 8.25 of 15 pts 7x Problem 6-15 Question Help Suppose a seven-year, $1,000 bond with a 7.8% coupon rate and semi-annual coupons is trading with a yield to maturity of 6.73%. 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 7.38% (APR with semi-annual compounding), what price will the bond trade for? a. Is this bond currently trading at a discount, at par, or at a premium? Explain. (Select the best choice below.) O A. 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. O C. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount. Because the yield to maturity is greater than the coupon rate, the bond is trading at par. D b. If the yield to maturity of the bond rises to 7.38% (APR with semi-annual compounding), what price will the bond trade for? The new price of the bond will be $ (Round to the nearest cent.)