q13. The market price of a bond issued at a premium is the present value of its principal amount at the effective interest A. plus the present value of all future interest payments at the effective interest rate. B. plus the present value of all future interest payments at the stated interest rate on bond. C. minus the present value of all future interest payments at the effective interest rate. D. plus total amount of all future interest payment.
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:
q13.
The market price of a bond issued at a premium is the present value of its principal amount
at the effective interest
A. plus the present value of all future interest payments at the effective interest rate.
B. plus the present value of all future interest payments at the stated interest rate on bond.
C. minus the present value of all future interest payments at the effective interest rate.
D. plus total amount of all future interest payment.
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