On October 20, 2010, the 8 year treasury note has a bid price of 99:18, and an ask price of 99:20. The treasury note has a face value of $10,000, and a coupon rate of 5% made semiannually. The treasury note matures on October 19, 2015. What is the ask yield-to-maturity?
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:
On October 20, 2010, the 8 year treasury note has a bid price of 99:18, and an ask price of 99:20. The treasury note has a face value of $10,000, and a coupon rate of 5% made semiannually. The treasury note matures on October 19, 2015. What is the ask yield-to-maturity?
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