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December 29, 2008

Calculating the Fair Price of a Bond Online

First in a series of articles on the fixed-income calculations.

Learn how to calculate the present value of a fixed-income instrument, such as a bond.

We will start by calculating the present value of bond's income stream. The present value of a bond's income stream is the sum of the present values of each coupon payment.

Use an online calculator to plug in your numbers.