(Bond Valuation with Semi- Annual Payments) Ben & Dairy Corporation's bond matures in 20 years. It pays interest semi- annually, has a coupon rate 5 % a face value of 1,000, and has a market intrest rate of 4.9%
(A) What is the intrinsic value of Jayson's bond?
(B) Does the bond sell at a premium or discount?
(YTM w/ annual payments) A corporate bond is priced at $ 959.25. It has a coupon rate of 3.5%, matures in 30 years, and has a face value of 1,000. What is the bond's yield to maturity?