gwen purchased a $10,000 face value bond with a coupon rate of 4% payable semiannually. on the purchase date the bond had 12yearw remaining until maturity and market interest rate were 4.4%. gwen sild the bond 3 1/2 years later when the prevailing interest rate had climbed to 4.9% what was the capital gain or loss on the bond investment.
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:
gwen purchased a $10,000 face
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