Bond Relationships. Select one or more of the following phrases to complete the following sentences. increase, decrease, par, discount, premium, less than, more than, greater, less, fall, rise a. As interest rate increases the value of a bond will ______________. b. The discount bond sells for ____________ as maturity approaches. c. When interest rates fall, the market required rates of return ________, and the bond prices will ________. d. If interest rates increase after a bond issue, the yield-to-maturity will ______,
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:
Bond Relationships. Select one or more of the following phrases to complete the following sentences. increase, decrease, par, discount, premium, less than, more than, greater, less, fall, rise
a. As interest rate increases the value of a bond will ______________.
b. The discount bond sells for ____________ as maturity approaches.
c. When interest rates fall, the market required
d. If interest rates increase after a bond issue, the yield-to-maturity will ______,
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