assume Amelia wants to earn a return of 12.25% and is offered the opportunity to purchase a $1,000 par value bond that pays a For example, 14.00% cupon rate (distributed semiannually) with three years remaining to maturity. intrinsic value: The following formula can be used to compute the bond's Intrinsic Value- Complete the following table by identifying the appropriate corresponding variables used in the equation. Unknown Variable Name Bond's semiannual coupon payment Bond's par value Semiannual required return Variable Value $35.00 $1,000 Based on this equation and the data, it is reasonable to expect that Amelia's potential bond investment is currenty exhibiting an intrinsic value less than $1,000. Now, consider the situation in which Amelia wants to earn a return of 12.00%, but the bond being cos dered for purch ase offers a coupon rate of 14.00% 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 bond is (rounded to the nearest whole dollar) is its par value, so that the Given your computation and conclusions, which of the following statements is true? O When the coupon rate is greater than Amella's required return, the bond's intrinsic value Will e less than its par value. O When the coupon rate is greoter than Amelia's required retun, the bond should trade at a premium O A bond should trade at a par when the coupon rate is greater than Amelia's required return. O When the coupon rate is greater than Amela's required return, the bond should trade at a discount. Assignment 4 . Cn_doc ^