How does the market determine the fair value of a bond, Financial Management

Assignment Help:

How does the market determine the fair value of a bond?

The fair value of a bond is a 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.  This text is use to solve for the fair (present) value of a bond.

 

 

 


Related Discussions:- How does the market determine the fair value of a bond

Swiss variable rate mortgage, A Swiss Variable Rate Mortgage (S...

A Swiss Variable Rate Mortgage (SVRM) is a version of ARM which carries a coupon rate that a bank can change any time giving a notice of three m

Balance sheet, Balance Sheet: The balance sheet measures the financial ...

Balance Sheet: The balance sheet measures the financial position of the business at a particular point in time.  It is also called Statement of Financial Position. The balan

What is adjusted basis, Q. What is Adjusted Basis? Adjusted Basis - Aft...

Q. What is Adjusted Basis? Adjusted Basis - After a taxpayer's basis in property is determined, it should be adjusted upwardto include any additions of capital to the property

Review of career plans, Review of career plans: career plans, emerging out ...

Review of career plans: career plans, emerging out of career planning exercise, have long term orientation. A career plan is developed based on assumptions about how the environmen

Define the term corporate and financial relations, Question: (a) Define...

Question: (a) Define the term "corporate and financial relations" and clearly state its components. (b) By using one example, identify the steps required to establishing cor

Capital market, Capital market: The term capital market is used to deno...

Capital market: The term capital market is used to denote all the activities of the primary and secondary markets. It can also refer to the market for equity and debt instrumen

Rating symbols, Rating Symbol Capacity ...

Rating Symbol Capacity for Timely Repayment Rating Symbol Capacity for Timely Repay

Define decision rule for accepting or rejecting projects, What is the decis...

What is the decision rule for accepting or rejecting proposed projects while using net present value? While using the net present value decision rule any project along with a net

Incorporation of the risk in investment proposal, Q. Incorporation of the R...

Q. Incorporation of the Risk in Investment Proposal? Incorporation of the Risk in Investment Proposal: - As stated previous risk is involved in every capital budgeting decision

Payback period, Can some one tell me how to calculate payback period and wh...

Can some one tell me how to calculate payback period and which formula i used to calculated payback period? Explain!!!!

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd