For example, assume Jackson wants to earn a return of 9.00% and is offered the opportunity to purchase a $1,000 par value bond that pays a 15.75% coupon rate (distributed semiannually) with three years remaining to maturity. The following formula can be used to compute the bond's intrinsic value: IntrinsicValue=(1+C)1A+(1+C)2A+(1+C)3A+(1+C)4A+(1+C)5A+(1+C)6A+(1+C)6B Complete the following table by identifying the appropriate corresponding variables used in the equation. Based on this equation and the data, it is value greater than $1,000. to expect that Jackson's potential bond investment is currently exhibiting an intrinsic Now, consider the situation in which Jackson wants to earn a return of 13.75%, but the bond being considered for purchase offers a coupon rate of 15.75%. 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 (rounded to the nearest whole dollar) is bond is its par value, so that the