I am trying to value a illiquid corporate bond issued at a discount to face value by a privately held company in India. The corporate bond is a sinkable bond (amortizing principle) with coupon rate of more than twice the risk free rate of the country.
- What all should be component of discount yield of the bond
- Once we have identified the components on the issuance date, how do we carry on the valuation as on different dates
How do we identify the credit spread for the bond issued (since this is a privately held company in a sector where bonds with similar ratings are unavailable
How can one justify such high coupon for the bond