What is the value or price of the existing debenture

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Covetton House has issued $10 million of debentures, with a fixed-interest coupon equal to current interest rates of 5.57% per annum, coupons paid half-yearly and a maturity of 20 years. After 5 years, yields on identical types of securities have risen to 15.85% per annum. What is the value, or price, of the existing debenture in the secondary market?

Reference no: EM132481769

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