bond valuation An investor has two bonds in his portfolio that have a face value of 2000 and pay a 10%annual coupon bond L matures in 15 years, while bond s matures in 1 years. 1- what will be the value of each bond be if the going interest rate is 5%, 8%, and 12%? assume that only one more interest payments is to be made on bond S at its maturity and that 15 more payments are to be made on bond L. 2- why does the longer-term bonds price vary more than the price of the shorter-term bond when interest rate change?
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:
bond valuation An investor has two bonds in his portfolio that have a face value of 2000 and pay a 10%annual coupon bond L matures in 15 years, while bond s matures in 1 years.
1- what will be the value of each bond be if the going interest rate is 5%, 8%, and 12%? assume that only one more interest payments is to be made on bond S at its maturity and that 15 more payments are to be made on bond L.
2- why does the longer-term
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