A callable bond has a call price of 103 and a call date of 7 years from date of issuance. It was originally a 10 year bond issued 2 years ago. What will be the n (number of periods) that you will put into your calculator to determine the yield.
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:
A callable bond has a call price of 103 and a call date of 7 years from date of issuance. It was originally a 10 year bond issued 2 years ago. What will be the n (number of periods) that you will put into your calculator to determine the yield.
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