question archive Assume a 15-year Treasury bond has a coupon rate of 5

Assume a 15-year Treasury bond has a coupon rate of 5

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Assume a 15-year Treasury bond has a coupon rate of 5.7%. Give examples of required rates of return that would make the bond sell at a discount, at a premium, and at par. b If this bond's par value is $1,000, calculate the differing values for this bond given the required rates you choose in part a. a. At what rate would the bond sell at a discount? (Select the best answer below.) O A. 4.8% OB. 5.7% O C. 8.8% At what rate would the bond sell at a premium? (Select the best answer below.) O A. 4.6% OB. 5.7% O C. 8.6% At what rate would the bond sell at par? (Select the best answer below.) O A. 4.6% OB. 5.7% O C. 8.696 b. If this bond's par value is $1.000 and the required rate is 8.8%, the present value of the bond is $ (Round to the nearest cent.) If this bond's par value is $1,000 and the required rate is 4.8%. the present value of the bond is (Round to the nearest cent.) If this bond's par value is $1.000 and the required rate is 5.7%, the present value of the bond is $ (Round to the nearest cent.) Click to select your answer(s).

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