Pinnacle Consulting is planning to issue a zero-coupon bond with a 12-year maturity at a yield to maturity of 5.80%. Pinnacle needs to raise $22,000,000. To the nearest thousand, how many bonds do they need to issue? *a zero-coupon bond pays no coupon interest payments, but is still calculated as if they pay semi-annually* State your answer in millions, e.g., 12,849,000 not 12,849
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:
Pinnacle Consulting is planning to issue a zero-coupon bond with a 12-year maturity at a yield to maturity of 5.80%. Pinnacle needs to raise $22,000,000. To the nearest thousand, how many bonds do they need to issue?
*a zero-coupon bond pays no coupon interest payments, but is still calculated as if they pay semi-annually* State your answer in millions, e.g., 12,849,000 not 12,849
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