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Bond Valuation

Bond Valuation. Bond Contract. Issuer (Seller). Investors (Buyers). $. $. $. Bond Contract. How much should you pay ? ? Bond Value = ?. Buy the bond today. 1. 2. 3. 4. n. C C C C C. 1. Par. 2. Value of Bond today. C = Coupon Payment = coupon rate x par

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Bond Valuation