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For example, assume Oliver wants to earn a return of 1 5 . 7 5 % and is offered the opportunity to purchase a $

For example, assume Oliver wants to earn a return of 15.75% and is offered the opportunity to purchase a $1,000 par value bond that pays a 13.50% coupon rate (distributed semiannually) with three years remaining to maturity. The following formula can be used to compute the bond's intrinsic value:
Intrinsic Value =A(1+C)1+A(1+C)2+A(1+C)3+A(1+C)4+A(1+C)5+A(1+C)6+B(1+C)6
Complete the following table by identifying the appropriate corresponding variables used in the equation.
\table[[Unknown,Variable Name,Variable Value],[A,,],[B,,$1,000
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