Ruby corporation is planning to buy bond that matures in 10 years. The annual coupon payment is at the rate of 3.5% and has a par value of RM1,000. Assume that the expected rate of return is 5%, calculate the bond valu
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:
Ruby corporation is planning to buy bond that matures in 10 years. The annual coupon payment is at the rate of 3.5% and has a par value of RM1,000. Assume that the expected
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