4) Consider a two-year bond with a face value of $100 and a coupon rate of 10%. The current term structure of interest rates is flat at 5%. What kind of risk are you exposed to if you hold the bond and your investment horizon is... а. .. опе уeаr? one year? b. three years? ...
Debenture Valuation
A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.
Note Valuation
It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:
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