A 3-year corporate bond is issued on 1/5/19 with a face value of $100 and a coupon of 2% pa (paid semi-annually with coupons paid on April 30 and October 31). On 2/7/19 Jessica buys this bond at a yield of 2% pa and she sells it on 28/8/19 at a yield of 2.4% pa. What has her annual return been?
A 3-year corporate bond is issued on 1/5/19 with a face value of $100 and a coupon of 2% pa (paid semi-annually with coupons paid on April 30 and October 31). On 2/7/19 Jessica buys this bond at a yield of 2% pa and she sells it on 28/8/19 at a yield of 2.4% pa. What has her annual return been?
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 3EA: Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the...
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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:
Question
Transcribed Image Text:A 3-year corporate bond is issued on 1/5/19
with a face value of $100 and a coupon of 2%
pa (paid semi-annually with coupons paid on
April 30 and October 31). On 2/7/19 Jessica
buys this bond at a yield of 2% pa and she
sells it on 28/8/19 at a yield of 2.4% pa. What
has her annual return been?
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