Determine the price of a $3,000,000 bond issue using Excel's =PV function under each scenario given in the spreadsheet. Face value of bonds $3,000,000 Maturity (years) 5 2559 10 10 Interest paid Annually Semiannually Semiannually Annually Semiannually Interest payments per year 1 2 2 1 2 Stated Rate 5.0% 5.0% 5.0% 5.0% 5.0% Effective (market) rate 7.0% 4.0% 7.0% 8.0% 5.0% Price of bonds.
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:
Ee 293.
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