1. Jayson Corporation's bond matures in 30 years. It pays interest annually, has a coupon rate of 6%, a face value of $1,000, and has a market interest rate of 5.9%
a. What is the intrinsic value of Jayson's bond?
b. Does the bond sell at a premium or discount? (Bond Valuation with Annual Payments)
2. Ben & Dairy Corporation's bond matures in 20 years, it pays interest annually, has a coupon rate of 5%, a face value of $1,000, and has a market interest rate of 4.9%
a. What is the intrinsic value of Jayson's bond?
b. Does the bond sell at a premium or discount? (Bond Valuation with Semi-Annual Payments)
2. Ben & Dairy Corporation's bond matures in 20 years, it pays interest semi-annually, has a coupon rate of 5%, a face value of $1,000, and has a market interest rate of 4.9%
a. What is the intrinsic value of Jayson's bond?
b. Does the bond sell at a premium or discount? (Bond Valuation with Semi-Annual Payments)
3. Jayson Corporation's bond matures in 30years. It pays interest semi-annually, has a coupon rate of 6%, a face value of $1,000, and has a market interest rate of 5.9%
a. What is the intrinsic value of Jayson's bond?
b. Does the bond sell at a premium or discount? (Bond Valuation with Annual Payments)
4. A corporate bond pays interest annually, has a coupon rate of 6%, a face value of $1,000, and has a market interest rate of 5.9%. What is the intrinsic value of Jayson's bond with:
a. 10 years to maturity?
b. 20 years to maturity?
c. 30 years to maturity?