What is the intrinsic value of jaysons bond

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Reference no: EM131959676

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?

Reference no: EM131959676

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