Question 3 and 5

(Bond Valuation with Annual Payments) 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) 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) 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) Jayson Corporation's bond matures in 30 years. 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) 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