Ten $4,000 bonds redeemable at par bearing 5% coupons payable annually are sold nine years before maturity to yield 5.7% compounded quarterly. What is the premium or discount and the purchase price of the bonds? (a) The is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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:
also find price of bond and round to nearsest 6 decimal place
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