The following RJR Nabisco bond is listed in a recent issue of The Wall Street Journal: Cur Yld Vol Close Net Chg RJR Nb 8 7.9 60 101.25 +1.125 This $1,000 par value bond has 4 years to maturity and makes semi-annual coupon interest payments. If your required rate of return is 9.5%, what would be the bond’s intrinsic value?
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:
The following RJR Nabisco bond is listed in a recent issue of The Wall Street Journal:
Cur Yld Vol Close Net Chg
RJR Nb 8 7.9 60 101.25 +1.125
This $1,000 par
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