Use the Excel "PV" function to find the present value of a 10% annual coupon bond with a $1,000 face value if the market interest rate (YTM) is 8%, and there are 20 years to maturity. Payment $100.00 Future Value $1,000.00 Interest Rate (YTM) 8% Number of Periods 20 Present Value
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:
| Use the Excel "PV" function to find the |
||
| Payment | $100.00 | |
| $1,000.00 | ||
| Interest Rate (YTM) | 8% | |
| Number of Periods | 20 | |
| Present Value | ||
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