A $100 000 face value strip bond has 6 years remaining until maturity. If the curtent market return rate is 4% compounded semi- annually, what is the fair market value of the strip bond? Select one: O A. $126 824 O B. $79 031 O C. $88 797 O D. $100 000 OE $78 849

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A: in this we have to calculate interest rate considering present value and future value.

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Q: . A 5% semi-annual pay $1,000 bond matures in 4 years. What is the YTM if the price is…

A: Compound = Semiannually = 2Coupon Rate = c = 5 / 2 = 2.5%Face Value = fv = $1000Time = t = 4 * 2 =…

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A: Present value = Future cash flow * (1 + Discount rate)^ Number of years

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A: Face Value of the Bond = F = $10,000 Return a. r = 11% compounded quarterly; b. r=11% compounded…

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A:

Q: ● ● Bob Marley Inc issues a $1000 face value zero coupon bond The initial price for the bond is $714…

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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: