You are considering the purchase of a $1000 par value bond issued by ZLY Corporation. The bond has exactly 10 years remaining to maturity, and pays a semi-annual coupon at a rate of 9% APR compounded semi-annually. The next coupon will be paid 6 months from today. What should be the price of the bond if the stated yield-to-maturity is 11% APR compounded semi-annually?
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:
You are considering the purchase of a $1000 par
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