Secured 9.875% guarantee security bonds, due 2x10 ₱250,000 10.0% commodity backed bonds (P50,000 maturing annually beginning in 20x5) 200,000
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:
- Durable Co.’s December 30, 20X0,
balance sheet contained the following items in the long-term liabilities section:
Unsecured |
|
9.375% registered bonds (P25,000 maturing annually beginning in 20x4) |
₱275,000 |
11.5% convertible bonds, callable beginning in 20x9, due 2010 |
125,000 |
Secured |
|
9.875% guarantee security bonds, due 2x10 |
₱250,000 |
10.0% commodity backed bonds (P50,000 maturing annually beginning in 20x5) |
200,000 |
What are the total amounts of serial bonds and debenture bonds?
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