--%>

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 : Risk from perspective of the Capital

    Discuss risk through the perspective of the Capital Asset Pricing Model (CAPM).The Capital Asset Pricing Model, or CAPM, can be utilized to compute the appropriate required rate of return for an investment project specified its degree of risk as

  • Q : Describe the fact of common

    Normal 0 false false

  • Q : Define Workload Workload : The

    Workload: The measurement of rises and reduces of inputs or demands for work, and an ordinary basis for projecting related budget requires for both established and new programs. This approach to BCPs is frequently viewed as an alternative to outcome o

  • Q : Are there security and soundness

    Are there security & soundness implications of mergers?No. All mergers needs regulatory approval and are subject to intense examination through regulators. If anything, the influence on safety and soundness is in general positive, as mergers

  • Q : Explain Financial Reporting Financial

    Financial Reporting: It is a set of documents made generally by government agencies at the end of accounting period. It usually enclose summary of accounting data for that time period, with background forms, notes, and other information.

  • Q : What is Budget Revision Budget Revision

    Budget Revision (BR): A document, generally approved by the Department of Finance, which cites a legal authority to authorize a modification in an appropriation. Usually, BRs either raise the appropriation or make adjustments to the groups or programs

  • Q : Explain Feasibility Analysis

    Feasibility Analysis: It is an analysis of the ability to finish a project successfully, taking into account legal, technological, economic, scheduling and various other factors. Instead of just diving into a project and hoping for th

  • Q : Chartered banks Normal 0 false false

    Normal 0 false false

  • Q : Public finance can you do this

    can you do this homework? My state Taxes

  • Q : Mergers encourage the formation of new

    Do mergers encourage the formation of new banks? Yes. The increase in the number of new banks in the second half of the 1990s coincides with a surge in merger activity in the similar period. A study conducted through the Federal Reserve Bank of