Assume a 5-year Treasury bond has a coupon rate of 4.5%. a. Give examples of required rates

Question:

Assume a 5-year Treasury bond has a rate of 4.5%.
a. Give examples of required rates of return that would make the bond sell at a discount, at a premium, and at par.
.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...