🇵🇭 Capital Market | Bond Valuation (Par, Premium and Discount)

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Please remember to watch the requisite videos for better learning experience.

The content illustrates the basic computation for bonds, both in the primary and secondary markets. You will determine if the bond is valued at par, discount or premium. Knowing these basic valuation can help you a lot if you are a bond trader or investor. The value of a bond is the sum of the present value of annuity of coupons plus the present value of the principal investments. The general rule of thumb is presented below:
1. Coupon rate is equal to YTM (Par)
2. Coupon rate is greater than YTM (Premium)
3. Coupon rate is less than YTM (Discount)

Requisite videos:

[❗We highly recommend that you start from Module 1 then the next Module 2 and so on... for better learning experience. You may encounter technical terms and complex examples in higher modules that are thoroughly discussed in introductory modules.]

Image reference:
1. Video Cover - Microsoft PowerPoint

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