Semi-Annual Interest Payments Sanity Check 2: Valuing Bond Issue ABS-CBN Corporation have issued bonds with coupon rate of 8%, P1000 par value, 20 years maturity. The bonds pay interest semi-annually (February 15 and August 15) and market's required yield to maturity is 7%. What is the price of the bond? 1 YTM Market ( 1 ) ( ) + Bond Value (semi-annual payments) + Principal YTM Market (Interest/2) 1+ YTM Market 2
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:
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