Your Investment Advisor faxed you the following information for a semi-annual coupon bond that he wants you to consider as a potential investment. Unfortunately, your fax machine is blurring some of the information. All you could read on is the following information: Face Value (Par) $1,000 Coupon Rate ===== Yield to Maturity 9.5% Years to Maturity 20 Price $689.15
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:
Your Investment Advisor faxed you the following information for a semi-annual coupon bond that he wants you to consider as a potential investment. Unfortunately, your fax machine is blurring some of the information. All you could read on is the following information:
Face Value (Par) $1,000
Coupon Rate =====
Yield to Maturity 9.5%
Years to Maturity 20
Price $689.15
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