Question: Suppose a seven - year, $ 1 , 0 0 0 bond with a 7 . 6 % coupon rate and semiannual coupons is trading

Suppose a seven-year, $ 1,000 bond with a 7.6% coupon rate and semiannual coupons is trading with a yield to maturity of 6.53%.
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 7.33%(APR with semiannual compounding), what price will the bond trade for?

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