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What is the difference between value of debt and investor’s required return
Thank you for helping me pass my TX and FR examsThe value of debt is the price investors are prepared to pay for it on the stock exchange. The investors required rate of return is the rate of interest that they are requiring on their investment.
I do suggest that you watch my free lectures on this – the lectures are a complete free course for Paper FM and cover everything needed to be able to pass the exam well.
AND what is the relationship between them
Can you name the lecture in which you have explained itIt is the investors required rate of return that determines the market value of debt.
This is all explained in my lectures on the valuation of securities. However the lectures are supposed to be watched in chapter order because they all build on each other.
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