Intrinsic Value of a Discounted Cash Flow Bond

Consider a bond that pays annual coupons of $50 and matures in 5 years. The bond is currently trading at $900. Investors require a yield to maturity (YTM) of 7%. Determine the bond's intrinsic value using the discounted cash flow (DCF) method. The DCF approach involves calculating the present value of all future cash flows, which include the annual coupon payments and the face value upon maturity. The face value of the bond is $1,000.