What would be the price of 10 years bond with face value Rs 1000, coupon rate of 10% and required rate of 12%. Calculate the price but show the answer of each year separately?
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 would be the price of 10 years bond with face value Rs 1000,
coupon rate of 10% and required rate of 12%. Calculate the price
but show the answer of each year separately?
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