he Pioneer Petroleum Corporation has a bond outstanding with an $90 annual interest payment, a market price of $880, and a maturity date in six years. Assume the par value of the bond is $1,000. Find the following: (Use the approximation formula to compute the approximate yield to maturity and use a calculator or Excel to compute the exact yield to maturity. Do
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:
he Pioneer Petroleum Corporation has a bond outstanding with an $90 annual interest payment, a market price of $880, and a maturity date in six years. Assume the par
Find the following: (Use the approximation formula to compute the approximate yield to maturity and use a calculator or Excel to compute the exact yield to maturity. Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)
| a) | coupon rate | % |
| b) | current yield | % |
| c1) | approximate yield to maturity | % |
| c2) | exact yield to maturity | % |
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