Solve the following problems: a. Ms. Maria wishes to find the YTM on Jamuna bond. The bond currently sells for$450,000, has a 10% coupon interest rate and S401021 par value, pays interest annually, and has 10 years to maturity. b. Find the value of a bond maturing in 6 years, with a S401021  par value and a couponrate of 9% (paid semi-annually) if the required return on similar-risk bonds is 14%. 3. Solve the following time value of money problems: a. Find the effective annual interest rate associated with an 8% nominal annual ratewhen interest is compounded quarterly. b. Find the value at the end of 2 years of Jafri's S401021 deposit in an account paying 8% annual interest compounded continuously.

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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: