Issued by ABC, 5 years maturity, 12% coupon rate, quarterly You want to invest in interest-paying bonds. If you expect from this investment If the yield is 14%, how much do you have to pay for each of these bonds?
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:
Issued by ABC, 5 years maturity, 12% coupon rate, quarterly
You want to invest in interest-paying bonds. If you expect from this investment
If the yield is 14%, how much do you have to pay for each of these bonds?
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