bond pays semiannual coupons at a coupon rate of 10% ( so two 5% coupons a year) this bond is quoted at par value 100 and an investor buys it. the settlement date on that trade is exactly 90 days since the last coupon payment date. assuming a 360 day year (ie. 180 days between each coupon.) what is the dirty price of this of this bond. (hint its going to be 100 + accrued coupon)
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:
a bond pays semiannual coupons at a coupon rate of 10% ( so two 5% coupons a year) this bond is quoted at par value 100 and an investor buys it. the settlement date on that trade is exactly 90 days since the last coupon payment date. assuming a 360 day year (ie. 180 days between each coupon.) what is the dirty price of this of this bond. (hint its going to be 100 + accrued coupon)
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