Bulldogs Inc. has Dog bonds outstanding with P1,500 face value and 8 years is remaining before its maturity. These bonds have a current price of P1,750 and pays 10% coupon rate. At the start of Year 4 after the purchase of the bonds, these may now be called at a price of P1,650. What is the approximate yield to call?
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:
Bulldogs Inc. has Dog bonds outstanding with P1,500 face value and 8 years is remaining before its maturity. These bonds have a current price of P1,750 and pays 10% coupon rate. At the start of Year 4 after the purchase of the bonds, these may now be called at a price of P1,650. What is the approximate yield to call?
(Format: X.XX%)
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