I already ask this but I whant know how you do the calculation, please could you show me all the step and the calculation. A $1,000 bond has a coupon of 6percent and mature after ten years. a.What would be the bonds price if comparable debt yield 8 percent? b.What woul be the price if comparable debt yield 8 percent and the bond mature after 5 years?
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:
I already ask this but I whant know how you do the calculation, please could you show me all the step and the calculation.
A $1,000 bond has a coupon of 6percent and mature after ten years. a.What would be the
b.What woul be the price if comparable debt yield 8 percent and the bond mature after 5 years?
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