Find the purchase price of each bond bought on the given dividend date. Accomplish this task at the back of this page or on another sheet of paper. Yield Соuрon Maturity Interest Rate Face Value Rate Dates Date P1, 000 P1, 000 P 1, 000 P 1, 000 5. P1, 000, 000 Annually Annually Annually Annually 5 years 5 years 5 years 5 years 1. 2. 3. 3% 5% 5% 6% 5% 6% 3% 4. 5% 7.5% 5.5% Annually 10 years 6. P 800, 000 4.5% 6% Semi-annually 6 years 7. P 600, 000 4% 6.5% Quarterly 36 months 8. P1, 200, 000 3.5% 6.5% Annually 36 months 9. P1, 200, 000 3.5% 6.5% Semi-annually 36 months 10. P1, 200, 000 3.5% 6.5% Quarterly 36 months
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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