Chapter 4 l Valuation of Long term securities(Correction In Description)| Problems |Business Finance
Business Management Sciences
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Chapter 4 l Valuation of Long term securities(Correction In Description)| Problems |Business Finance
543 просмотра · 3 г. назад
Business Management Sciences
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543 просмотра · 3 г. назад
#chapter4 #Businessfinance #vanhorn #valuationoflongtermsecurities #problems #solution
If you have seen my video there confusion and some correction too jo clear kar du
---------------Correction-------------
In question 11 ,Kd/2 is wrong we will not divide it by 2 because kd= Semi annual yield so kd is already converted in to semi thats why we dont need to divide it with 2
----------------Confusions----------------
(All statements are correct and verified)
1.The value printed on the face of bond is face value
2.When Interest payments are added in the principle amount then it is called maturity value
For example ap ky share ki value 10 hai, but market mein uski value 12 lag rahy hai, tu 12 market value khalaye gai
3.par value terminal value maturity value face value all are same
4.market value is the current price of bond face value is the stated value on the face of bond and maturity value is Principle amount plus interest payments
when the bond matures we get face value which includes principle amount and interest payments