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Suppose a seven-year, 1000 bond with 8.3% coupon rate and semiannual coupons is trading...

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Accounting

Suppose a seven-year, 1000 bond with 8.3% coupon rate and semiannual coupons is trading with a yield to maturity of 6.28%.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 7.25%(APR with semiannual compounding), what price will the bond trade for?

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