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Present Value of a Bond
Present Value of a bond is used to determine the current market price of a bond, that may pay regular interest payments, and is redeemable at some time in the future for a specific price. Use the present value of a bond calculator below to solve the formula.
Present Value of a Bond Definition
Present Value of a Bond is the value of a bond equal to the discounted remaining interest payments and the discounted redemption value of the bond certificate.
Variables
PV of Bond=Current market value of bond
Redemption Value=Value of bond when redeemed at maturity
K=Current rate of return offered in the market
N=Number of interest payments remaining until the bond matures
Interest Payment=Amount of Each Interest Payment
Present Value of a Bond Formula
