13 Bond Z is a 2% annual coupon bond maturing in 5 years with a face value of $1,000. The interest rate for all maturities is 10%. What is Bond Z's Macaulay duration? NOTE: Answers should be expressed in years rounded to the nearest hundredth (0.01) - for example, enter 1.2345 years as 1.23. Intermediate results should not be rounded to less than 6 decimal places unless instructed otherwise. years.
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:
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