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Please help fill in all blanks/bubbles For example, assume Ella wants to earn a return of 9.00% and is offered the opportunity to purchase a

image text in transcribedPlease help fill in all blanks/bubbles

For example, assume Ella wants to earn a return of 9.00% and is offered the opportunity to purchase a $1,000 par value bond that pays a 7.50% 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+CJ^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 unreasonable to expect that Ella's potential bond investment is currently exhibiting an intrinsic value less than $1,000. Now, consider the situation in which Ella 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 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 Ella's required return. When the coupon rate is greater than Ella's required return, the bond should trade at a premium. When the coupon rote is greater thon Clio's required return, the bond should t:"ode ot o discount. When the coupon rate is greater than Ella's required return, the bond's intrinsic value will be less than its par value

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