of 5%. Face value of the corporate bond Php. 1,500. can you compute the following? a. Annual Coupon Rate b. Coupon Payment per period 1. Coupon 2. Time c. Present Value of the Coupon Payment 1. Semi-annual Coupon 2. Yield of maturity 3. Total Periods d. Present Value of the Face
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:
Given: find the corporate bond value with an annual interest rate of 7%, making semi-annual payments, after 2 years, the bond matures and repaying the principal for our purposes, let’s assume a yield to
maturity of 5%.
Face value of the corporate bond Php. 1,500.
can you compute the following?
a. Annual Coupon Rate
b. Coupon Payment per period
1. Coupon
2. Time
c.
1. Semi-annual Coupon
2. Yield of maturity
3. Total Periods
d. Present Value of the Face Value
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