Security Valuation . Meaning The process of determining how much a security is worth. Security valuation is highly subjective, but it is easiest when one is considering the value of tangible assets, level of debt, and other quantifiable data of the company issuing a security . What is 'Bond Valuation'? 1. Bond valuation is a technique for determining the theoretical fair value of a particular bond. 2. Bond valuation includes calculating the present value of the bond and future interest payments. 3. Its cash flow and maturity date are plays important role in calculating bond value. 4. An investor uses bond valuation to determine what rate of return could be get in future. 5. A bond is a debt instrument that provides a steady income stream to the investor in the form of coupon payments. The characteristics of a regular bond include : Coupon rate : Some bonds have an interest rate, also known as the coupon rate, w...