Suppose a$$ seven$-$year, $$1000$ bond with a $7\mathrm{.}7\%$ coupon rate and semiannual coupons is trading with a yield to maturity of $6\mathrm{.}29\%.$a$.$ Is this bond currently trading at a$$ discount, at$$ par, or at a$$ premium? Explain.b$.$ If the yield to maturity of the bond rises to $($APR with semiannual$$ compounding$),$ what price will the bond trade$$ for?Question content area bottomPart $1$a$.$ Is this bond currently trading at a$$ discount, at$$ par, or at a$$ premium? Explain.$($Select the best choice$$ below.$)$A$.$Because the yield to maturity is greater than the coupon$$ rate, the bond is trading at a premium.B$.$Because the yield to maturity is less than the coupon$$ rate, the bond is trading at a discount.C$.$Because the yield to maturity is less than the coupon$$ rate, the bond is trading at a premium.Your answer is correct.D$.$Because the yield to maturity is greater than the coupon$$ rate, the bond is trading at par.Part $2$b$.$ If the yield to maturity of the bond rises to $7\mathrm{.}23\%($APR with semiannual$$ compounding$),$ what price will the bond trade$$ for?