Question: Suppose a 7 - year, $ 1 , 0 0 0 bond with a coupon rate of 8 . 3 % and semi - annual

Suppose a 7-year, $1,000 bond with a coupon rate of 8.3% and semi-annual coupons is trading with a yield to maturity of 6.57%. Is this bond currently trading at a discount, at par, or at a premium? 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 greater than the coupon rate, the bond is trading at a premium. C. Because the yield to maturity is greater than the coupon rate, the bond is trading at par. D. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount.

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