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At what price will the bond? trade

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Reference no: EM133163048

Question - Suppose a? seven-year, $1,000 bond with a 9.32% coupon rate and semiannual coupons is trading with a yield to maturity of 7.11%.

a. Is this bond currently trading at a? discount, at? par, or at a? premuim? Explain.

b. If the yield to maturity of the bond rises to 7.94% ?(APR with semiannual? compounding), at what price will the bond? trade?

Reference no: EM133163048

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