Semiannual coupons is trading with a yield to maturity

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Suppose a seven-year, $1,000 bond with a 7.8% coupon rate and semiannual coupons is trading with a yield to maturity of 6.61%.

a) is this bond currently trading at a discount, a par, or at a premium? Explain.

b)if the yield to maturity of the bond rises to 7.32% (APR with semiannual compounding), what price will the bond trade for?

Reference no: EM131506479

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