how does the market determine the fair value of a, Financial Management

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how does the market determine the fair value of a

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.

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