a bond sold two months ago for £112. the bond is worth £105 in today's market. assuming no changes in risk, which of the following is true? select an answer and submit. for keyboard navigation, use the up/down arrow keys to select an answer. a the face value of the bond must be £112. b interest rates must be lower now than they were two months ago. the coupon payment of the bond must have increased. none of the above e the bond's current yield has decreased from two months ago.
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:
a bond sold two months ago for £112. the bond is worth £105 in today's market. assuming no changes in risk, which of the following is true? select an answer and submit. for keyboard navigation, use the up/down arrow keys to select an answer. a the face value of the bond must be £112. b interest rates must be lower now than they were two months ago. the coupon payment of the bond must have increased. none of the above e the bond's current yield has decreased from two months ago.
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