ve years ago Messy House Painting issued a 15-year bond with a $1,000 maturity value and a 6 percent coupon rate of interest. Interest is paid semiannually. The bond is currently selling for $864. What is the bond's yield to maturity? Do not round intermediate calculations. Round your answer to one decimal place. % If the bond can be called in four years for a redemption price of $1,025, what is the bond's yield to call? Do not round intermediate calculations. Round your answer to one decimal place. %
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:
Five years ago Messy House Painting issued a 15-year bond with a $1,000 maturity value and a 6 percent coupon rate of interest. Interest is paid semiannually. The bond is currently selling for $864.
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What is the bond's yield to maturity? Do not round intermediate calculations. Round your answer to one decimal place.
%
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If the bond can be called in four years for a redemption price of $1,025, what is the bond's yield to call? Do not round intermediate calculations. Round your answer to one decimal place.
%
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