A coupon bond that pays semiannual interest is reported in the Wall Street Journal as having an ask price of 115% of its $1,000 par value, If the last interest payment was made 3 months ago and the coupon rate is 5.80%, the invoice price of the bond will be Multiple Choice S115000 O S79 00 SLIG4 50 $12100
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:
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