The fair value of debt securities not regularly traded can be most reasonably approximated by:

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The discounted present value method is the most accurate approach to determine the fair value of debt securities that are not regularly traded. This calculation takes into consideration the principal and interest payments over time and discounts them back to present value using a discount rate that reflects the risk associated with the security. This method is commonly used by analysts and investors to estimate the fair value of corporate bonds, municipal bonds, and other debt securities.

The Fair Value of Debt Securities Not Regularly Traded Can