A company in Oman issued bonds with 600 OMR face value and a 15 percent annual coupon rate The current yield to maturity on this bond is 5 percent and the maturity date is 6 years. The current market price is 570.89. Calculate the expected change in the bond price if the yield maturity is expected to increase by 0.0176 and the modified duration of this bond is 5.69 Select one: a. 0.47 b. All the given answers in this question are wrong c. 27.0282 d. 0.3708 e. -16.9806
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 company in Oman issued bonds with 600 OMR face value and a 15 percent annual coupon rate The current yield to maturity on this bond is 5 percent and the maturity date is 6 years. The current market price is 570.89. Calculate the expected change in the
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