For the given corporate bond, whose annual simple interest rate is provided, find the semiannual simple interest payment and the total interest earmed over the life of the bond. Assume 365 days in a year. $11,900 Company A, 10-year bond, 3.169% The semiannual interest on the corporate bond is $ (Round to the nearest cent as needed.)
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:
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