a. A 13 percent semi-annual coupon bond has 10 years to maturity and face value of tk. 1000, the rate of return is 11.5 %. Calculate the current market price of the bond and justify your findings if current market price of the bond TK. 1070.
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. A 13 percent semi-annual coupon bond has 10 years to maturity and face value of tk. 1000, the
b. Briefly explain different types of corporate bonds with basic features. Identify opportunities and challenges to develop bond market in Bangladesh.
c. A company has five stock in the portfolio and portfolio beta= 1.8, each stock has equal weight and the total value of the portfolio=250,000 tk. One month later, finance manager decided to sell 4 th stock and replaced by a new stock which value =70000 tk and new stock beta =1.60, calculate the portfolio new beta.
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