Ibra Fabrics Inc. has issued 30-year semiannual coupon bonds with a face value of OMR 1,000. If the annual coupon rate is 10% and the current yield to maturity is 12%, what is the firm's current price per bond? O a. OMR 1,163.31 O b. OMR 838.39 OC OMR 823.23 Od. OMR 838.90 Oe OMR 1,161.61

Ibra Fabrics Inc. has issued 30-year semiannual coupon bonds with a face value of OMR 1,000. If the annual coupon rate is 10% and the current yield to maturity is 12%, what is the firm's current price per bond? O a. OMR 1,163.31 O b. OMR 838.39 OC OMR 823.23 Od. OMR 838.90 Oe OMR 1,161.61

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 12P: Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may...

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Concept explainers

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:

Question

Time left 0:44
Ibra Fabrics Inc. has issued 30-year semiannual coupon bonds with a face value of OMR 1,000. If the annual coupon rate is 10% and the current yield to maturity is 12%, what is the firm's
current price per bond?
O a. OMR 1,163.31
O b. OMR 838.39
Oc OMR 823.23
O d. OMR 838.90
O e OMR 1,161.61
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