1. choices: $842, $1,052, $947, $421
2. choices: Equal to, greater than, less than
3. choices: a discount, a premium, a par

Now, consider the situation in which Jackson wants to earn a return of 8% on a $1,000 par value bond, but the bond being considered for purchase offers a coupon rate of 10%. 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 is its par value, so that the bond is trading at