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The coupon rate gives the gross rate of interest received by debenture-holders.
The coupon rate is based on the nominal value of the debentures.
MV is normally quoted as the MV of a block of £100 nominal value. For example 10% debentures quoted at £95 means that a £100 block is selling for £95 and annual interest is £10 per £100 block. Irredeemable.
Using the same logic as for dividends and looking at the cash flows from the investor's point of view.
MV (ex interest) = present value of future interest payments discounted at the debenture-holder's required rate of return.
For irredeemable debentures interest is a constant perpetuity.
MV (ex int) = I/r where I = annual interest received r = return required by debenture holder
r = I/MV = Interest yield
The company gets tax relief on the debenture interest it pays, which reduces the cost of debentures to the company.
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