Assume a

15-year

Treasury bond has a coupon rate of

3.8%.

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 par value is

$5,000,

calculate the differing values for this bond given the required rates you choose in part

a.

a. At what rate would the bond sell at a discount?