One year ago, Berardi corporation issued a series of 13% semiannual coupon callable bonds with par value of $1,000 and maturity of ten years with the provision that the bond to be called in 6 years. The call price of the bonds is $1,065 per bond and currently the bonds are traded at $1,270 per bond in the bond market. What is the Berardi corporation bonds’ nominal yield to maturity? What is the Berardi corporation bond's nominal yield to call?
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:
One year ago, Berardi corporation issued a series of 13% semiannual coupon callable bonds with par value of $1,000 and maturity of ten years with the provision that the bond to be called in 6 years. The call price of the bonds is $1,065 per bond and currently the bonds are traded at $1,270 per bond in the bond market.
What is the Berardi corporation bonds’ nominal yield to maturity? What is the Berardi corporation bond's nominal yield to call?
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