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Now, consider the situation in which Ella wants to earn a return of 1 0 % on a $ 1 , 0 0 0 par
Now, consider the situation in which Ella wants to earn a return of on a $ par value bond, but the bond being considered for purchase offers a coupon rate of 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 is equal to greater than, less than its par value, so that the bond is trading at a premium, a discount, par
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