Question: please help this is for a final grade! thank you! When the bond's coupon rate is equal to the required return, the band's intrine value

When the bond's coupon rate is equal to the required return, the band's intrine value wil equal per value and the bond will trade at pac When the bond's coupon rate is greater to the bondholder's required return, the band's in value wil exceed is par value, and the bond will trade at a premium. When the bond's coupon rate is less than the bondholder's required return, the bond's intrinsk value will be less than is per value, and the bond will trade at a discount For example, assume Noah wants to eam a return of 12.00% and is offered the opportunity to purchase a $1,000 per vakre bond that pers 10.00% coupon rate (distributed semiannually) with three years remaining to maturity. The following formula can be used to compute the bond intrinsic value Intrinsie Value = d.c + aio + acc +0.0 + 0 + adom Complete the following table by identifying the appropriate corresponding variables used in the equation. Variable Value Variable Name Unknown $1,000 Bond's semiannual coupon payment Bond's par value Semiannual required return expect that Noah's potential bond investment is currently exhibiting an intrinsic value Based on this equation and the data, it is less than $1,000 Now, consider the situation in which Noah wants to earn a return of 8.00%, but the bond being considered for purchase offers a coupon rate of 10.00%. Again, assume that the bond pays semiannual interest payments and has three years to maturity. If you round the band's intrinsic value to the nearest whole dollar, then its intrinsic value of (rounded to the nearest whole dollar) is less than its par value, so that the bond is trading at a discount Assessment Questions 2 Intrinsic Value to +70 Search the 137:01 + 0+ 0 0.0 Complete the following table by identifying the appropriate corresponding variables used in the equation Unknown Variable Name Bond's semiannual coupon payment Variable Value Bond's par value $1,000 Semiannual required return Based on this equation and the data, it is less than $1,000. xpect that Noah's potential bond Investment is currently exhibiting an intrinsic value Now, consider the situation in which Noah wants to earn a return of 8.00%, but the bond being considered for purchase offers a coupon rate of 10.00%. Again, assume that the bond pays semiannual interest payments 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 less than its par value, so that the bond is trading at a discount Given your computation and conclusions, which of the following statements is true? O A bond should trade at a par when the coupon rate is greater than Noah's required return. When the coupon rate is greater than Noah's required return, the bond should trade at a discount. When the coupon rate is greater than Noah's required return, the bond should trade at a premium. When the coupon rate is greater than Noah's required return, the bond's intrinsic value will be less than its par value. Save & Continue Conince without saving
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