Beam Inc. bonds are trading today for a price of $530.14.The bond pays annual coupons with a coupon rate of 2% and the next coupon is due in one year. The bond has a yield to maturity of5.61%. How many years are there until the bond matures? The number of years until the bond matures is_________years. (Round to the nearest whole number.)
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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