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.
b. If this bond's is $10,000, calculate the differing values for this bond given the required rates you chose in part a.
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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...