Question
SWH Corporation issued bonds on January, 2008. The bonds had a coupon rate of 5.5%, with interest paid annually. The face value of the bonds
SWH Corporation issued bonds on January, 2008. The bonds had a coupon rate of 5.5%, with interest paid annually. The face value of the bonds is $1,000 and the bonds mature on January, 2023. What is the intrinsic value of an SWH Corporation bond on January 1, 2014 given the investor's required return of 7%?
A. $907
B. $1,004.28
C. $949.19
D. $956.27
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Financial Trading And Investing
Authors: John Teall
3rd Edition
0323909558, 978-0323909556
