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iven your computation and conclusions, which of the following statements is true? A) When the coupon...

iven your computation and conclusions, which of the following statements is true?

A) When the coupon rate is greater than Noah’s required return, the bond should trade at a premium.

B) When the coupon rate is greater than Noah’s required return, the bond’s intrinsic value will be less than its par value.

C) When the coupon rate is greater than Noah’s required return, the bond should trade at a discount.

D) A bond should trade at a par when the coupon rate is greater than Noah’s required return.

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Answer: When the coupon rate is greater than Noah’s required return, the bond should trade at a premium.

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