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Abond'scouponpartiallydeterminestheinterest-basedreturnthatabond(WILL/MIGHT)pay,andabondholder'srequiredreturnreflectsthereturnthatabondholder(WOULDLIKE/ISOBLIGATED)toreceivefromagiveninvestment Whenthebond'scouponrateisgreatertothebond'sholder'srequiredreturn,thebond'sintrinsicvaluewill(EQUAL/EXCEED/BELESSTHAN)itsparvalue,andthebondwilltradeatapremium Whenthebond'scouponrateislessthanthebondholders'requiredreturn,thebond'sintrinsicvaluewillbelessthanitsparvalue,andthebondwilltradeat(PAR,DISCOUNT,PREMIUM)

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  1. Abond'scouponpartiallydeterminestheinterest-basedreturnthatabond(WILL/MIGHT)pay,andabondholder'srequiredreturnreflectsthereturnthatabondholder(WOULDLIKE/ISOBLIGATED)toreceivefromagiveninvestment
  2. Whenthebond'scouponrateisgreatertothebond'sholder'srequiredreturn,thebond'sintrinsicvaluewill(EQUAL/EXCEED/BELESSTHAN)itsparvalue,andthebondwilltradeatapremium
  3. Whenthebond'scouponrateislessthanthebondholders'requiredreturn,thebond'sintrinsicvaluewillbelessthanitsparvalue,andthebondwilltradeat(PAR,DISCOUNT,PREMIUM)
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