A $1,000, 12 year bond carries a 3.5% coupon. If the prevailing market rate on the date of purchase is 4.5% compounded semiannually, what is the purchase price of the bond? Multiple Choice $1,254 70 $947.93 $1097.30

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Q: klp.3

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Q: A 6.34% coupon bond with 11 years left to maturity is priced at $1,010.55. What is this bond's yield…

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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: