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:
What is the yield to maturity on a $1,000 par value 6⅞ percent Hilton Corporation bond if the investor buys the bond at a market price of $1,250.00? Assume the coupon is paid annually and the bond matures in 15 years.
I ask that this be explained as detailed as possible, I have no problem being taught like a 5 year old. The math for this class is what is the most confusing to me, and quite frankly I'd rather have it over explained to me than just simply be given the answer.
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