SWH Corporation issued bonds on January 1, 2004. The bonds had a coupon rate of 4.5%,...
SWH Corporation issued bonds on January 1, 2004. The bonds had a coupon rate of 4.5%, with interest paid semiannually. The face value of the bonds is $1,000 and the bonds mature on January 1, 2014. What is the intrinsic value (to the nearest dollar) of an SWH Corporation bond on January 1, 2008 to an investor with a required return of 6%?
| a. |
$888 |
b. |
$925 |
c. |
$916 |
d. |
$947 |
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SWH Corporation issued bonds on January 1, 2004. The bonds had a
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