oodview Berhad issued RM 20 million 6% convertible loan notes on 1 January 2017. Upon maturity on 31 December 2019, the holders of the loan notes have the option to accept cash or convert the notes into ordinary shares at the term of RM 100 loan notes can be converted into 50 ordinary shares. The market interest rate for the year 2017 was 10%. Required: In accordance with MFRS 9: Financial Instruments: a) Determine the loan amount over its maturity period. b) Determine the rele
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:
Accounting
Goodview Berhad issued RM 20 million 6% convertible loan notes on 1 January 2017. Upon maturity on 31 December 2019, the holders of the loan notes have the option to accept cash or convert the notes into ordinary shares at the term of RM 100 loan notes can be converted into 50 ordinary shares. The market interest rate for the year 2017 was 10%. Required: In accordance with MFRS 9: Financial Instruments:
a) Determine the loan amount over its maturity period.
b) Determine the relevant
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