I was wondering if there was a simple calculation for the market value of redeemable debt, it seems to change in every question I do and I just can’t seem to wrap my head around it?
The market value of debt is always the present value of the interest and redemption, discounted at the investors required rate of return.
I go through examples of this in my free lectures. The lectures are a complete free course for Paper FM and cover everything needed to be able to pass the exam well.