Bond value = the total present value of interest income in the future period+the present value of future due principal or selling price. Bond value refers to the present value of cash inflow that investors expect when investing in bonds. The cash inflow of bonds mainly includes the interest and principal recovered at maturity or the cash obtained when selling. When the purchase price of a bond is lower than the value of the bond, it is worth buying.
Extended data:
Precautions:
Risk of price change: the bond price in the bond market changes at any time, and investors should carefully grasp the bond price.
Transfer risk: when investors need funds badly and have to change hands, sometimes they have to lower their prices.
Credit risk: this mainly occurs in corporate bonds, because for various reasons, corporate advantages cannot fully fulfill their responsibilities.
Policy risk: changes in bond prices due to policy changes.
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