Net Present Value

What is the meaning of Bond Price?

December 24, 2017

Bond Price refers to the Present Value of the Cash stream to be generated in the future by a bond.  Future cash flows are discounted to calculate this value. Thus, present values of all the possible coupon payments are added to the present value of par value at maturity....

What is the meaning of ‘Abandonment Value’?

December 1, 2017

Abandonment Value of a project is the correspondent cash value on immediate liquidation or sale after removing all debts which have to be paid back. In other words, it is also the liquidation value of the project or an asset. Generally, if the estimated resale value of the project...