For exampte, assuime Oliver wants to earm a retum of 10.50% and is offered the opportunity to purchase a $1,000 par value bond that pays a 8.75% coupon rate (distributed semiannually) with three years remaining to maturity. The following formula can be used to compute the bond's intrinsic value: Intrintic Value =(1+C)A+(1+C)A+(1+C)A+(1+C)A+(1+C)3A+(1+C)A+(1+C)1B Compiete the foliowing tabie by identifying the appropriate corresponding variables used in the equation. Based on this equation and the data, it is to expect that Oliver's potential bond investment is currently exhibiting an intrinsic value less than $1,009. Now, conalder the situation in which Oliver wants to earn a return of 11.75%, but the bond being considered for purchase offers a coupon rate of B.75\%. Agein, assume that the bond pays semiannual interest payments and has three years tatmaturity. If you round the bond's intrinsic value to the nearest whole dollan, then its intrintic value of (rounded to the nearest whole doltar) is Based on this equation and the data, it is to expect that Oliver's potential bond investment is currently exhibiting an intrinsic value less than 51,000. Now, consider the situation in which Oliver wants to earn a return of 11,75%, but the bend being considered for purchase offers a coupon rate of B.75\%. Agaif, 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 doliar, then its intrinsic value of (rounded to the nearest whole dollar) is its par value, so that the bond Given your computation and conclusions, which of the following statements is true? A bond srould trade at par when the coupon rate is iess than Oiver's required return. When the coupon rate is less than Oiver's required return, the bond should trate at a premium. When the coupen rate is less than Oliver's required return, the intrinsic value will be greater than its par value. When the coupon rate is less than Oelver's required return, the bond sheuld trade at a discount