(Bond valuation?)

Bank of America has bonds that pay a coupon interest rate of 5

percent and mature in 10 years. If an investor has a required rate of return of

7.6

?percent, what should she be willing to pay for the? bond? What happens if she pays more or? less?

a. The price she would be willing to pay for the bond is

?$.

? (Round to the nearest? cent.)b. The Bank of America bond is not an acceptable investment if she pays

more less

for the bond because the expected rate of return for the bond is

less greater

than her required rate of return.???(Select from the? drop-down menus.)