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Stock Valuation versus Bond Valuation

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Why is stock valuation considerably less precise than bond valuation? Can you give at least two reasons. Would it be possible to provide some industry references?

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Stock Valuation versus Bond Valuation is explained in a structured manner in this response. The answer includes references used.

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Stock valuation is considerably less precise than bond valuation because of two reasons. First, the market value of a stock after a period of time is far less predictable than the value of a bond. Second, the dividend paid by the stock is far ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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