A corporate bond has an 8

Finance Dec 22, 2020

A corporate bond has an 8.5% coupon rate, pays interest semiannually and matures in 15 years. The bond's par value is $1,000. If the investors' annual required rate of return is 10%, the intrinsic value of the bond should be 5585 5923 0 51156 51231 51220

Expert Solution

The answers to the given question are provided in the order below

=PV(10%/2,2*15,-8.5%*1000/2,-1000)
=884.71
=885

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