Suppose a$$ seven$-$year, $$$$1$ comma $000$ bond with a coupon rate of $8\mathrm{.}4\%$ and semiannual coupons is trading with a yield to maturity of $6\mathrm{.}31\%.$

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 $7\mathrm{.}43\%($APR with semiannual$$ compounding$),$ what price will the bond trade$$ for?

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Part $1$

a$.$ Is this bond currently trading at a$$ discount, at$$ par, or at a$$ premium? Explain.$($Select the best choice$$ below.$)$