dufner Corp. issued 14-year bonds one years ago at a coupon rate of 7.9 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.6 percent what is the current dollar price assuming a par value of $1000? Park void co. issued 16 year bonds two years ago at a coupon rate of 9.5 percent. The bonds make semiannual payments. If these bonds currently sell for 104 percent of par value, what is the YTM?
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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