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Fill in the blanks. Par________ Coupon rate_________ Bond Term_________ Coupon Payment_______ Market rate premium_______ PV________ rate_______ n________ PMT________ FV_________ Bank of America has a bond

Fill in the blanks.

Par________

Coupon rate_________

Bond Term_________

Coupon Payment_______

Market rate premium_______

PV________

rate_______

n________

PMT________

FV_________

Bank of America has a bond that pays a 6.5% coupon rate annually and matures in 5 years. If Nicole has a 4.3% required rate of return. What should she be willing to pay for the bond which has a $1,000 par value? What happens if she pays more or less than this amount?

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