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In this lesson, the focus is on evaluating and calculating the market value or present value of a debenture, an unsecured debt instrument issued by a company to raise capital. The present value of a redeemable debenture consists of the present value of all future payments, including the redeemable value at maturity, which are discounted at the required rate of return. To determine the market value, future payments and the maturity value must be discounted. When a company issues a debenture, investors receive coupon payments, which represent the interest rate paid by the company over a specified period, and these payments are included in the discounting process.