PLEASE SHOW WORK AND FORUMLAS STEP BY STEP (EXCEL PREFERRED)

Suppose a seven-year, $1,000 bond with an 8.1% coupon rate and semiannual coupons is trading with a yield to maturity of 6.34%. 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 7.25% (APR with semiannual compounding), what price will the bond trade for? A. Because the yield to maturity is less 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 discount. C. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium. D. Because the yield to maturity is greater than the coupon rate, the bond is trading at par. b. If the yield to maturity of the bond rises to 7.25% (APR with semiannual compounding), what price will the bond trade for? The new price of the bond is $. (Round to the nearest cent.)