bond valuation

**bond valuation**

Bond valuation is the process of determining the fair value or price of a bond. It involves calculating the present value of the bond’s expected future cash flows, which include periodic coupon payments and the principal repayment at maturity. This valuation helps investors assess whether a bond is priced fairly in the market and make informed investment decisions. Key factors influencing bond valuation include interest rates, time to maturity, coupon rate, and the creditworthiness of the issuer. Understanding bond valuation is essential for both individual investors and financial professionals to evaluate fixed-income securities effectively.