A.When market rate of interest was 12%, Joshkin Corporation issued $1,000,000 11%, 10-year bonds that pay interest annually. The selling price of the bond issue IS? B.What is the present value of $40,000 to be received in three years, at 12% compounded annually? $ __________ Show Your Work
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:
A.When market rate of interest was 12%, Joshkin Corporation issued $1,000,000 11%, 10-year bonds that pay interest annually. The selling price of the bond issue IS?
B.What is the present value of $40,000 to be received in three years, at 12% compounded annually? $ __________
Show Your Work
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