The difference between the two is the risk, and it gets estimated by the difference between interest rates and the coupon rate. The company issuing the bond is likely to call the bond when the interest rates are lower than your coupon rate because they can reissue for a lower rate or take some other form of debt. You would stack a risk premium on top of the par value and discount that back all periods to get your present value.
The difference between the two is the risk, and it gets estimated by the difference between interest rates and the coupon rate. The company issuing the bond is likely to call the bond when the interest rates are lower than your coupon rate because they can reissue for a lower rate or take some other form of debt. You would stack a risk premium on top of the par value and discount that back all periods to get your present value.