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calculate the differing values for this bond given the required rates you choose in part a Assume a 5-year Treasury bond has a coupon rate
calculate the differing values for this bond given the required rates you choose in part a
Assume a 5-year Treasury bond has a coupon rate of 6.1%. 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? (Select the best answer below.) A. 5.1% B. 6.1% C. 7.9% At what rate would the bond sell at a premium? (Select the best answer below.) A. 5.1% B. 6.1% C. 7.9% At what rate would the bond sell at par? (Select the best answer below.) A. 5.1% B. 6.1% C. 7.9% b. If this bond's par value is $5,000 and the required rate is 7.9%, the present value of the bond is $ (Round to the nearest cent.)Step by Step Solution
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