Market Value of Debt Formula is a specific formula that is used to calculate the current value of debt in monetary terms. It takes into account the face value of the debt, its interest rate, the time remaining until maturity, and other factors. In other words, it calculates the present worth of those liabilities based on their future cash flows discounted at an appropriate rate. This formula can be useful for companies looking to assess the current state of their debts and make informed decisions about how best to manage them. By understanding their total liabilities, businesses can better plan for the future and optimize their cash flow.