Bond valuation is the process of determining the appropriate price to pay for a bond. A bond’s value is based solely on it’s future cash flows. Therefore, the first step in the fundamental analysis of a bond is determining the present value of all future cash flows. The sum of those values is equal to the present […]
What are bonds?
We’ve addressed what stocks are, and now it’s time to talk about the other most common financial asset that people buy: Bonds. So what are bonds? Definition: What are bonds? A bond is a debt contract. The person who buys the bond, buys the right to receive their money back at some later date, in […]