0.10/2 = 0.05 semiannual interest YTM 20,000* 0.12/2 = 1200 semiannual interest PV=1200/(1+0.05) + 1200 / (1+0.05)+........ + 1200/ (1+.05)4+20,000 / (1+0.05) = 20783 The bond price is with premium since YTM is less than Coupon rate 2) Ford Stock: It has been expected to begin paying dividends, beginning with a dividend of $10 coming 3 years from today. After Year 3 growth should be a constant at 5% per year. The required rate of return on Ford's stock is 15%. Required: What is the intrinsic value of Bond Alpha and Ford stock