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How is bond valued?

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How is bond valued?
posted Jul 10, 2017 by Ananya Saha

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Bond valuation is a technique for determining the fair value of a particular bond. Bond valuation includes calculating the present value of the bond's future interest payments, also known as its cash flow, and the bond's value upon maturity, also known as its face value or par value. Because a bond's par value and interest payments are fixed, an investor uses bond valuation to determine what rate of return is required for an investment in a particular bond to be worthwhile.

answer Jul 11, 2017 by Shubham Rajput
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