SWH Corporation issued the 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 a SWH Corporation bond on January 1, 2006, to an investor with a yield of 6% required?

Answer rating: 100% (QA)

The intrinsic value of a bond is the present value of all future cash flows ... View the full answer