A 7-year zero-coupon bond has a face value of $1,00o. If its YTM changes from 3.9% to 4.7%, what is the resulting percentage change in its price? Use the price determined from the first yield, 3.9%, as the base in the percentage calculation. Round to th
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 2
Homework • Unanswered
A 7-year zero-coupon bond has a face value of $1,000. If its YTM changes from 3.9% to 4.7%, what is the resulting percentage
change in its price? Use the price determined from the first yield, 3.9%, as the base in the percentage calculation. Round to the
nearest hundredth of a percent. (e.g., 4.32% = 4.32). [Hint: Percent price change = ((P2-P1)/P1)x100. If the price dropped, enter a
negative number]
Tyne your numeric answer and submit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffcb4b124-0bae-4a71-ac36-265cc0494b9b%2F3361ac80-2c54-4c26-8b76-b28fce160308%2Fq53eeg_processed.jpeg&w=3840&q=75)
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