What is the bond’s price if comparable debt yields 12%?

The bond’s price can be calculated by taking into account the present value of its expected cash flows and any associated credit risks such as default or liquidity risk. In this case, since we know that comparable debt yields 12%, then the bond’s price should also reflect a return of 12%.

To do this, we need to first determine the annual coupon rate – which is essentially the interest rate paid on bonds over their life cycle – by using an appropriate formula such as YTM (Yield to Maturity). This will provide us with an indication of what rate lenders are willing to accept when investing in similar securities.

Once we have determined the coupon rate, we can then calculate the bond’s price by discounting all future payments back to today\’s date at our pre-determined cost of capital. For example, if a 10-year bond has an annual coupon payment of 5% and maturity value of $1000; then its current market price would be equal to:

Bond Price = ($50 / (1 + 0.12)^1) + ($50 / (1+0.12)^2)+ ….. + ($1050 / (1+0.12)^10) = $871.

In conclusion, while analyzing a bond’s price takes into account numerous factors such as maturity date & yield; by understanding how different variables interact it is possible for investors/lenders alike to assess risk/return profiles before making decisions regarding certain investments going forward.