If interest rates rise after a bond issue, what will happen to the bond’s price and YTM? Doesthe time to maturity affect the extent to which interest rate changes affect the bond’s price?(Again, an example might help you answer this question.)
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:
If interest rates rise after a bond issue, what will happen to the
the time to maturity affect the extent to which interest rate changes affect the bond’s price?
(Again, an example might help you answer this question.)
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