Question: Suppose a 5 - year, $ 1 , 0 0 0 bond with a 7 . 5 7 % coupon rate and annual coupons is

Suppose a 5-year, $1,000 bond with a 7.57% coupon rate and annual coupons is trading with a yield to maturity of 6.41%.
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 6.52%(with annual coupons), at what price will the bond trade?

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