41. What is the purchase price of a bond worth P150 000 with a coupon rate of 7% payable annually for 15 years? Assume that the market rate is 3%. A. P96 279.29 B. P125 348.32 Sol'n: C. P208 220.71 D. P221 627.61

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A:

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Q: what is the current yield of the bond?

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Q: am. 111.

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Q: 15

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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: