The price of a 3-month zero-coupon bond with $100 face value is $99.50. The price of a 6-month zero-coupon bond with $100 face value is $99.10. The price of a fixed- rate coupon bond which has a maturity of 9 months, a coupon rate of 3%, a face value of $100, and which pays coupons quarterly, is $100. Three months ago the 6-month semi- annually compounded spot rate was 4%. What is the price of a 0.75-year floating-rate bond, which pays coupons semi-annually, which has a face value of $100, and the coupon rate of which is equal to the semi-annually compounded 6-month spot rate plus 2% spread? а. b. What is the price of a 4-year floating-rate bond, which pays coupons semi- annually, which has a face value of $100, the coupon rate of which is equal to the semi-annually compounded 6-month spot rate, and which has just paid its most recent coupon?

Q: A $1,000 face value bond matures in 11 years, pays interest annually, and has a 6.25 percent coupon.…

A: Yield to maturity (YTM) is the total return anticipated on a bond if it is held until it matures. It…

Q: You purchase a bond with an invoice price of $1,480. The bond has a coupon rate of 5.4 percent, and…

A: The clean price is the cost of a coupon bond excluding accumulated interest installments. The clean…

Q: Suppose that General Motors Acceptance Corporation issued a bond with 10 years until​ maturity, a…

A: Coupon amount= 1000*7% =70 YTM=6% Face Value= 1000 Maturity Year Remaining =10-1= 9 years

Q: You purchase a bond with an invoice price of $1,041. The bond has a coupon rate of 5.63 percent, it…

A: Accrued Interest = Par value * coupon interest rate/2 * (6-time to next coupon payment )/ 6 =…

Q: A bond has 10 years until maturity, a coupon rate of 8.1%, and sells for $1,190. Interest is paid…

A: a. Calculation of bond price:Formula used:

Q: Two treasury bonds (with semi-annual coupons) are traded. The first bond matures in six months, has…

A: Bond 1: Annual coupon rate = 8% Semi-annual rate = 8%/2 = 4% Dirty price “P” = $99.49 Let Face Value…

Q: A bond has 6 years remaining to maturity, pays annual coupons (yesterday) of $7.4, and has a face…

A: To calculate the return on the bond if held for one year, we need to consider both the coupon…

Q: A bond currently sells for $1,080, which gives it a yield to maturity of 7%. Suppose that if the…

A: Duration of bond shows how much is the bond sensitive to interest rate changes and how much there is…

Q: A government bond matures in 7 years, makes annual coupon payments of 5.1% and offers a yield of…

A: A bond is an instrument that represents the loan that is made by the investor to the company and…

Q: A coupon bond that pays semiannual interest is reported in the Wall Street Journal as having an ask…

A: Bond price refers to an amount that is used by investors for buying the bonds which are issued by…

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: