Forums›ACCA Forums›Market Value of Irredeemable DebenturesACCA ForumsAFMMarket Value of Irredeemable DebenturesSsaeid13y agoHow do you calculate Market Value of the following Irredeemable Debentures: $200,000 @12% with market yield of 10%. Answer must be $240,000John MoffatTutor13y ago#1Market value = Interest / Required return Interest p.a. = 12% x 200,000 = 24,000 p.a. Market value = 24,000 / 10% = 240,000Sign in to reply to this topic.
Ssaeid13y agoHow do you calculate Market Value of the following Irredeemable Debentures: $200,000 @12% with market yield of 10%. Answer must be $240,000
John MoffatTutor13y ago#1Market value = Interest / Required return Interest p.a. = 12% x 200,000 = 24,000 p.a. Market value = 24,000 / 10% = 240,000