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value of the cash flows that the security will generaten in the future. par value, This also results from the relationshlp between of bond's coupen

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value of the cash flows that the security will generaten in the future. par value, This also results from the relationshlp between of bond's coupen rate mi a bondecider's reculred rate of return. Remember, a bond's coupon rotn partially determines the interest-based return that an bond reflects the retum that b bondhelder to receive from a even investment. valuet, and its intrinsic value. These reistionships can be summarted as fallews: - When the bonds coupon rate is equal to the bonehoider's required raturn, the bonde intrinsic velue will equal is par value, and the bend wit tiste at par. - When the bond's coupon rate is greater than the bondholder's reguired return, the bonds's itrinsic walue wil Es per avie ata the bond will trade at a premium. - When the bond's coupon rate is less than the bondholder's reguired return, the bonds intrimic value will be less than its sar value, and the bond will trade at. coupon rate (distributed semiannualiy) with three years remaining to maturity. The following formula can be used to cempute the banss intintic vaket Naind en this equation and the date, if is - rearer than 11,000 (rounded to the nearest whele nglar) : the nearect whole dollar, then its intrevic vatue of Bapar was, ne the the bend is Given your computation and condusions. nhich of the follewing stisetients as true? A bosd should trade at a par whes the coupon rave is greater that oivesrequied refum. (rounded to the nearest whole dallar) is. aryou round the bond's intrinsic velve to its per value, sa that the Given your computation and condusions, which of the following statements is true? A bond should trade at a par when the coupon rate is greater than Ollvia's required return. When the coupon rate is greater than Olivia's required return, the bond should trade at a premium. When the coupon rate is greater than Ollvia's required return, the bond should trade at a discount. When the coupon rate is greater than Ollvia's required return, the bond's intrinsic value will be less than its par value

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