Bond fair price
The sum of all future payments on the issue, discounted to today at the required yield.
Formula
P = \sum_{t=1}^{T}\frac{C_t}{(1+y)^{t}} + \frac{N}{(1+y)^{T}}C_t is the coupon of the period, N the par value, y the required yield, T the number of periods. Everything that moves the price in the market enters the formula only through y.
How to read the number
A bond has a calculable anchor that a share does not: the payments are known, and only the discount rate is open to argument.
When the metric lies
For issues with a put date, amortisation or a floating coupon the direct calculation fails: the cash flow is not known in advance, and the price is worked out by scenarios instead.
Also known as: theoretical bond price, present value of a bond