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Assume a 5 - year Treasury bond has a coupon rate of 4 . 5 % . a . Give examples of required rates of
Assume a year Treasury bond has a coupon rate of
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 $ calculate the differina values for this bond aiven the required rates vou choose in part a
a At what rate would the bond sell at a discount? Select the best answer below.
A
B
C
At what rate would the bond sell at a premium? Select the best answer below.
A
B
C
At what rate would the bond sell at par? Select the best answer below.
A
B
C
b If this bond's par value is $ and the required rate is the present value of the bond is $Round to the nearest cent.
If this bond's par value is $ and the required rate is the present value of the bond is $Round to the nearest cent.
If this bond's par value is $ and the required rate is the present value of the bond is $Round to the nearest cent.
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