Find the price of a semi-annual coupon bond where annual coupon rate is 8%. The face value is Rs. 1000 and there are 5 years until maturity. The annual percentage rate on bonds of comparable risk with semi annual compounding is 16%
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:
Find the price of a semi-annual coupon bond where annual coupon rate is 8%. The face value is Rs. 1000 and there are 5 years until maturity. The annual percentage rate on bonds of comparable risk with semi annual compounding is 16%.
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