8.Use the following information to answer item 38 and 39: On Jan 1, 2021, ABC Company purchased 5-year bonds with face value of P8,000,000 and stated interest of 10% per year payable semi-annually Jan 1 and July 1. The bonds were acquired to yield 8%. Present value factors are A.8,652,400 B.8,000,000 C.8,662,400 D.8,642,400
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:
8.Use the following information to answer item 38 and 39: On Jan 1, 2021, ABC Company purchased 5-year bonds with face value of P8,000,000 and stated interest of 10% per year payable semi-annually Jan 1 and July 1. The bonds were acquired to yield 8%. Present value factors are
A.8,652,400
B.8,000,000
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