*Based on this equation and the data, it is (reasonable or unreasonable) to expect that Sophia's potential bond investment is currently exhibiting an intrinsic value greater than $1000.

Complete the following table by identifying the appropriate corresponding variables used in the equation. Unknown Variable Name Variable Value Bond's semiannual coupon payment $45.00 Bond's par value $1,000 Semiannual required return 5.2500% Based on this equation and the data, it is to expect that Oliver's potential bond investment is currently exhibiting an intrinsic value greater than $1,000. consider the situation in which Oliver wants to earn a return of 12%, but the bond being considered for purchase offers a coupon rate of 9.00% Now, Again, assume that the bond pays semiannual interest payment and has three years to maturity. If you round the bond's intrinsic value to the nearest whole dollar, then its intrinsic value of rounded to the nearest whole dollar is its par value, so that the bond is Given your computation and conclusions, which of the following statements is true? O When the coupon rate is greater than Oliver's required return, the bond should trade at a discount. O When the coupon rate is greater than Oliver's required return, the bond's intrinsic value will be less than its par value Q When the coupon rate is greater than Oliver's required return, the bond should trade at a premium O A bond should trade at a par when the coupon rate is greater than Oliver's required return