Checklist for calculation of fair value and yield of bonds for a private investor

The article presents the stages of calculating the fair value of a bond for a private investor. The calculation is made using the income method, based on such value drivers as the expected yield from the bond, maturity, alternative yield for the investor, tax rate for individuals, brokerage commission. An analysis of the dependence of the required return on the investor and the fair value of the bond is presented. An algorithm for calculating the yield of a bond is shown.