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Eastpac Bank has just completed its bond issuance in September 2022 where each bond has a face value of $100,000 with payments to investors on
Eastpac Bank has just completed its bond issuance in September 2022 where each bond has a face value of $100,000 with payments to investors on a monthly basis at a coupon rate of 6% p.a. The bonds will mature in September 2029 . Other similar bonds have a yield of 9% p.a. compounded annually. Each Eastpac bond is currently trading at $834,985.17. What is the (absolute) difference between the intrinsic value and the current market price? Your response must be entered as a positive numerical value with 2 decimal places and excluding the dollar sign (\$)
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