Present Value (pv) Of A Bond

A bond is a security that is issued by a government or other entity to pay off a loan.

The bond’s coupon, or interest payments, are fixed at a certain rate and must be paid back within a certain period of time.

The present value (pv) of the bond is the sum of the present value of all the interest payments on the bond and the present value of the mathematically required principal repayments.

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