:When a bond sells at a discount, it means that The company was offering a higher price for the bond at issuance .a O The bond's contract rate is equal to the market rate.b O The bond's contract rate is lower than the market rate .c O The bond's contract rate is higher than the market rate.d O
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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