How is Bond Valuation done? Explain the application of the concepts of duration and convexity in bond valuation.

Bond valuation is a crucial aspect of the financial markets, providing investors with a framework to determine the fair value of a bond. The valuation process involves assessing the present value of a bond's future cash flows, which include periodic interest payments and the principal repayment at maturity. Two essential concepts used in bond valuation are duration and convexity.

### Bond Valuation Process:

1. Future Cash Flows:
   - Bonds generate periodic interest payments, usually semi-annually or annually, known as coupon payments.
   - At maturity, the bondholder receives the face value (par _____ __________ ____ ___ __________ _____ ______ _____ ________ __________ _____.
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