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Bond valuation The process of bond valuation is based on the fundamental concept that the current price of a security can be determined by calculating
Bond valuation The process of bond valuation is based on the fundamental concept that the current price of a security can be determined by calculating the present value of its future cash flows. A bond's coupon rate determines the interestbased return that a bond that a bondholder receive from the investment. pay, and a bondholder's required rate of return reflects the return Bond valuation implies a relationship between the bondholder's required rate of return, the bond's coupon rate, and the bond's par value. These relationships can be summarized as follows: 
Bond valuation
The process of bond valuation is based on the fundamental concept that the current price of a security can be determined by calculating the present value of its future cash flows.
A bond's coupon rate determines the interestbased return that a bond that a bondholder receive from the investment. pay, and a bondholder's required rate of return reflects the return Bond valuation implies a relationship between the bondholder's required rate of return, the bond's coupon rate, and the bond's par value. These relationships can be summarized as follows:
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