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6. Amponsah would like to buy a bond of a company with a face value of GHS2,000 and coupon rate of 5 percent. The bond

6. Amponsah would like to buy a bond of a company with a face value of GHS2,000 and coupon rate of 5 percent. The bond will be redeemed after 10 years at a premium of 10 percent. Amponsahs required rate of return is 6 percent but the bonds yield to maturity is 8 percent. Required: a. Calculate the intrinsic value of the bond b. Calculate the market price of the bond c. Is the bond undervalued or overvalued

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