Pfizer Manufacturing just issued a bond with a $1,000 face value and a coupon rat of 8%. If the bond has a life of 20 years, pays annual coupons, and the yield to maturity is 7.5%, what is the total present value of the bond's coupon payments? $1,050.97 $ 815.56 $ 235.41 $ 341.15

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A: Annual current yield = (Annual coupon / Current bond price) x 100

Q: How much would be your total yield if you sell this bond today?

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Q: a. What is the yield to maturity? b. What is the yield to call if they are called in 5 years? c.…

A: a b

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A: Given:

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Q: what will the price be 5 years from now?

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A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

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Q: what will the price be 11 years from now

A: Answer Face value FV=1000 N=25 Present value PV =925 Coupon = 8.5%×1000=85 YTM=[…

Q: e current bond price f

A: Face Value = $ 1000Coupon = Coupon Rate * Face ValueCoupon = 7% * 1000Coupon = $ 70YTM = 8%

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: