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How to Calculate the Price of a Bond
How do we calculate the value of a bond? 🤔 The price of a bond is based on its present value — meaning how much investors should pay for it today. But here’s the key idea: a bond’s value comes from two parts: 1️⃣ Present Value of an Annuity – the series of coupon payments investors receive over time. 2️⃣ Present Value of a ...
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