What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $850, if it pays 6% fixed interest for the duration of the bond? yield = [ ? ] % Give your answer as a percent rounded to the nearest hundredth.
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:
![What is the yield on a corporate bond with a $1000
face value purchased at a discount price of $850, if
it pays 6% fixed interest for the duration of the
bond?
yield = [ ? ] %
Give your answer as a percent rounded to the nearest
hundredth.
Hint: yield = interest paid
price paid
Enter](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdc69b946-6ab7-43e3-82e9-048fa0b60be9%2Fd5628c96-b40b-4f30-baa4-9d4aa2bf1fca%2F4ik29wg_processed.jpeg&w=3840&q=75)
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