Calculating the Market Value of Debt (MVD) is a critical step in making sound financial decisions when it comes to debt. It helps lenders monitor risk and identify opportunities for profitability. MVD is a measure of debt’s potential return, which can be determined by assessing the current market rates for comparable investments. By taking into account factors like liquidity, yield and associated costs, lenders are able to evaluate their credit exposure more accurately and make more informed decisions about extending loans or issuing bonds. With MVD, lenders can ensure that they remain both profitable and responsible in the face of ever-changing markets.