--%>
Assignment Help - homework help

How does the market find out the fair value of a bond

How does the market find out the fair value of a bond?
The fair value of bond is the present value of the bond's coupon interest payments plus the present value of the face value payment at maturity, discounted at the market's required rate of return for the bond in question.

   Related Questions in Finance Basics

  • Q : Demand for small automobiles Normal 0

    Normal 0 false false

  • Q : Which insurance company takes on the

    Which kind of insurance company usually takes on the greater risks: a life insurance company or a property and casualty insurance company? The risks sheltered against by property and casualty companies are much less predictable than are the risk

    		•
  • Q : Describe difference between business

    Describe difference between business risk and financial risk?Business risk refers to the uncertainty company hold regarding to its operating income (also termed as earnings before interest & taxes or EBIT). Business risk is brought onto sale

    		•
  • Q : Describe factors affecting minimum cash

    Describe the factors affecting the option of a minimum cash balance amount. The minimum cash balance amount is find out by how easy it is to increase funds when needed, how predictable the cash flows are, and how risk averse managers are.

    		•
  • Q : Explain Public Service Enterprise Fund

    Public Service Enterprise Funds: For legal base accounting purposes, the fund categorization which identifies funds utilized to account for the transactions of self-supporting enterprises which render goods or services for a direct charge to user (tha

    		•
  • Q : Emergency Banking Act What did the

    What did the Emergency Banking Act do?

    		•
  • Q : Define Obligations Obligations : The

    Obligations: The amounts that a governmental unit might legally be needed to pay out of its resources. Budgetary authority should be obtainable before obligations can be formed. For budgetary aims, obligations comprise payables for goods or services r

    		•
  • Q : Cause-and-effect chain Normal 0 false

    Normal 0 false false

    		•
  • Q : Explain the role of a dealer in the OTC

    Normal 0 false false

    		•
  • Q : Increased common stock cash dividend

    Do you trust an increased common stock cash dividend can send any signal to the common stockholders? If so, what signal might it send? An increase in cash dividends is frequently seen as a positive signal. A company would be unlikely to raise

    		•