For example, assume Oliver wants to earn a retum of 10.50% and is offered the opportunity to purchase a $1,000 par value bond that pays a 8.7$14 coupon rate (distributed semiannually) with three years remsining to maturity. The following formula can be used to compute the bond's intrinsic value: Complete the following table by identifying the appropriate corresponding variables used in the equation. Based on this equation and the data, is is to expect that Olver's potential bond investmen is currentiv exhibiting an intrinsic value less than $1,000, Now, consider the situation in which Oiver wants to earn a rotum of 6.75%, but the bond being considered for purchase offers a coupan rate of 8.75%. Again, assume that the bond pays semiannual interest payments and has three years to matunty. If you round the bondis intrinsic value to the nearest whole dollar, then its intrinsic volue of (rounded to the nearest whole dollar) is ito par value, so that the oond Given your computation and conclusions, which of the following statements is true? When the coupon rate is greater than Oliver's required return, the bond's intrinsic value will be less than its par value. When the coupon rate is greater than Oliver's required return, the bond should trade at a premium. A bond should trade at a par when the coupon rate is greater than Oliver's required return. When the coupon rate is greater than Oliver's required return, the bond should trade at a discount