Topic 2: Intrinsic Value
Using either a financial calculator or Excel, compute the intrinsic value of one of the bonds you just purchased. Make sure to note if there is any difference between your intrinsic value computation and the price you paid. Post the calculations or spreadsheet to the appropriate Discussion Board.
Post your calculation of a bond’s intrinsic value from Exercise 1 to this Discussion Board.
Checklist:
1. Properly calculate the intrinsic value of bonds by either using Excel or a calculator.
2. Apply the computation of intrinsic value to the actual price paid to discover if you have paid a fair market value for the bond. 3. Illustrate the process of computing intrinsic value of bonds accurately.