What is the relationship between interest rates and bond valuations? What are the fundamental assumptions that go into determining the value of a bond?
What is the relationship between interest rates and bond valuations? What are the fundamental assumptions that go into determining the value of a bond?
What is the relationship between interest rates and bond valuations? What are the fundamental assumptions that go into determining the value of a bond?
What is the relationship between interest rates and bond valuations? What are the fundamental assumptions that go into determining the value of a bond?
Definition Definition Calculates the present value of a bond's expected future periodic coupon payments. Bond valuation determines the theoretical fair value of a particular bond and helps investors estimate what rate of return they could expect. The bond's theoretical fair value is computed by discounting the future cash flows or coupon payments by an applicable discount rate.
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