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A Janelle Industries debenture has a 10 per cent coupon rate and $100 face value. Interest is paid semi-annually, and the debenture has 20 years to…

A Janelle Industries debenture has a 10 per cent coupon rate and $100 face value. Interest is paid semi-annually, and the debenture has 20 years to…


15. A Janelle Industries debenture has a 10 per cent coupon rate and $100 face value. Interest is paid semi-annually, and the debenture has 20 years to maturity. If investors require a 12 per cent yield, what is the value of the debenture?

Select one:

A. $75.23

B. $47.71

C. $85.06

D. $84.95

E. $100.00 Incorrect

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The correct answer is: $84.95

Could you tell me how to calculate this answer?

 

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A Janelle Industries debenture has a 10 per cent coupon rate and $100 face value. Interest is paid semi-annually, and the debenture has 20 years to… was first posted on August 16, 2020 at 4:05 am.
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