You are looking at a 18-year zero-coupon bond that has a yield to maturity of 5.0%. What is the value of the bond? Assume semi-annual compounding.

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A:

Q: If P=20000 then (F/P,8%,7)=?

A: Here, P is 20000 Interest Rate is 8% Time Period is 7 years

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Q: How much of the original principal is still unpaid after he has made the 8th payment?

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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: