Now, consider the situation in which Noah wants to earn a return of 12.00%, but the bond being considered for purchase offers a coupon rate of 14.00%. 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 $1,049 (rounded to the nearest whole dollar) is greater than its par value, so that the bond is trading at a discount . Given your computation and conclusions, which of the following statements is true? O A bond should trade at a par when the coupon rate is greater than Noah's required return When the coupon rate is greater than Noah's required return, the bond should trade at a premium. When the coupon rate is greater than Noah's required return, the bond should trade at a discount. When the coupon rate is greater than Noah's required return, the bond's intrinsic value will be less than its par value. Show transcribed image text