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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 +

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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. Based on this equation and the data, it is reasonable to expect that Liam's potential bond investment is currently exhibiting an intrinsic value less than $1,000. Now, consider the situation in which Liam wants to earn a return of 4.50%, but the bond being considered for purchase offers a coupon rate of 7.50%. 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 _______ its par value, so that the bond is ______. Given your computation and conclusions, which of the following statements is true? A bond should trade at a par when the coupon rate is greater than Liam's required return. When the coupon rate is greater than Liam's required return, the bond should trade at a premium. When the coupon rate is greater than Liam's required return, the bond's intrinsic value will be less than its par value. When the coupon rate is greater than Liam's required return, the bond should trade at a discount

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