Ques→A 10 year bond with a face value of $500 and with annual coupan at 4.5% is purchased to yield an effective annual rate of interest of 3% if held to maturity using the same yield find the market (i.e. Clean) Price of bond 2 months After its 3rd Coupon is paid. Please Try to Ans ASAP I will Appreciate ur help !:)
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:
Ques→A 10 year bond with a face value of $500 and with annual coupan at 4.5% is purchased to yield an effective annual rate of interest of 3% if held to maturity using the same yield find the market (i.e. Clean) Price of bond 2 months After its 3rd Coupon is paid.
Please Try to Ans ASAP I will Appreciate ur help !:)
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