版權(quán)說明:本文檔由用戶提供并上傳,收益歸屬內(nèi)容提供方,若內(nèi)容存在侵權(quán),請進(jìn)行舉報或認(rèn)領(lǐng)
文檔簡介
1、,,,,,,,,,,,,,Irwin/McGraw-Hill,,,,,Chapter 4,Fundamentals of Corporate FinanceThird Edition,Valuing Bonds,,Brealey Myers Marcusslides by Matthew Will,Irwin/McGraw-Hill,The McGraw-Hill Companies, Inc.,2001,,,,,,,,,
2、,,,,,Irwin/McGraw-Hill,Topics Covered,Bond Characteristicsreading the financial pagesBond Prices and YieldsBond prices and interest ratesYTM vs. current yieldRate of ReturnInterest Rate RiskThe Yield CurveNominal
3、 and Real Rates of InterestDefault Risk,,,Bonds,TerminologyBond - Security that obligates the issuer to make specified payments to the bondholder.Coupon - The interest payments made to the bondholder.Face Value (Par
4、Value or Maturity Value) - Payment at the maturity of the bond.Coupon Rate - Annual interest payment, as a percentage of face value.,,,Bonds,WARNINGThe coupon rate IS NOT the discount rate used in the Present Value ca
5、lculations. The coupon rate merely tells us what cash flow the bond will produce. Since the coupon rate is listed as a %, this misconception is quite common.,,,Bond Pricing,The price of a bond is the Present Value
6、of all cash flows generated by the bond (i.e. coupons and face value) discounted at the required rate of return.,,,,Bond Pricing,ExampleWhat is the price of a 6 % annual coupon bond, with a $1,000 face value, which mat
7、ures in 3 years? Assume a required return of 5.6%.,,,Bond Pricing,Example (continued)What is the price of the bond if the required rate of return is 6 %?,,,Bond Pricing,Example (continued)What is the price of the bo
8、nd if the required rate of return is 15 %?,,,Bond Pricing,Example (continued)What is the price of the bond if the required rate of return is 5.6% AND the coupons are paid semi-annually?,,,Bond Pricing,Example (continue
9、d)Q: How did the calculation change, given semi-annual coupons versus annual coupon payments?,Time PeriodsPaying coupons twice a year, instead of once doubles the total number of cash flows to be discounted in the PV f
10、ormula.,Discount RateSince the time periods are now half years, the discount rate is also changed from the annual rate to the half year rate.,,,Bond Yields,Current Yield - Annual coupon payments divided by bond price.Y
11、ield To Maturity - Interest rate for which the present value of the bond’s payments equal the price.,,,Bond Yields,Calculating Yield to Maturity (YTM=r)If you are given the price of a bond (PV) and the coupon rate, the
12、 yield to maturity can be found by solving for r.,,,Bond Yields,ExampleWhat is the YTM of a 6 % annual coupon bond, with a $1,000 face value, which matures in 3 years? The market price of the bond is $1,010.77,,,Bond Y
13、ields,WARNINGCalculating YTM by hand can be very tedious. It is highly recommended that you learn to use the “IRR” or “YTM” or “i” functions on a financial calculator.,,,Bond Yields,Rate of Return - Earnings per pe
14、riod per dollar invested.,Interest Rate Risk,Premium Bond,Discount Bond,Interest Rate Risk,30 yr bond,3 yr bond,Nominal and Real rates,Yield on UK nominal bonds,Yield on UK indexed bonds,Default Risk,Credit riskDefault
15、premiumInvestment gradeJunk bonds,Default Risk,Corporate Bonds,Zero couponsFloating rate bondsConvertible bonds,,,The Yield Curve,Term Structure of Interest Rates - A listing of bond maturity dates and the interest r
16、ates that correspond with each date.Yield Curve - Graph of the term structure.,Web Resources,www.finpipe.comwww.investinginbonds.comwww.bloomberg.com/markets/C13.htmlwww.bondmarkets.com/publications/IGCORP/what.htm
溫馨提示
- 1. 本站所有資源如無特殊說明,都需要本地電腦安裝OFFICE2007和PDF閱讀器。圖紙軟件為CAD,CAXA,PROE,UG,SolidWorks等.壓縮文件請下載最新的WinRAR軟件解壓。
- 2. 本站的文檔不包含任何第三方提供的附件圖紙等,如果需要附件,請聯(lián)系上傳者。文件的所有權(quán)益歸上傳用戶所有。
- 3. 本站RAR壓縮包中若帶圖紙,網(wǎng)頁內(nèi)容里面會有圖紙預(yù)覽,若沒有圖紙預(yù)覽就沒有圖紙。
- 4. 未經(jīng)權(quán)益所有人同意不得將文件中的內(nèi)容挪作商業(yè)或盈利用途。
- 5. 眾賞文庫僅提供信息存儲空間,僅對用戶上傳內(nèi)容的表現(xiàn)方式做保護(hù)處理,對用戶上傳分享的文檔內(nèi)容本身不做任何修改或編輯,并不能對任何下載內(nèi)容負(fù)責(zé)。
- 6. 下載文件中如有侵權(quán)或不適當(dāng)內(nèi)容,請與我們聯(lián)系,我們立即糾正。
- 7. 本站不保證下載資源的準(zhǔn)確性、安全性和完整性, 同時也不承擔(dān)用戶因使用這些下載資源對自己和他人造成任何形式的傷害或損失。
最新文檔
- 通信原理lecture4 sampling-
- ch4 單元干燥
- ch4 防火墻技術(shù)
- ch4 兼并與收購業(yè)務(wù)
- 外源甲烷(CH4)濃度、pH、鹽分含量對鹽堿土CH4吸收的影響研究.pdf
- ch4金融機(jī)構(gòu)與金融體系
- ch4~ch6 電子商務(wù)技術(shù)基礎(chǔ)-安全與支付
- 變壓吸附提純沼氣中CH4的試驗研究.pdf
- He對煤中CH4的置換效應(yīng)研究.pdf
- 中國CH4柱濃度時空分布及排量研究.pdf
- 水稻強(qiáng)化栽培體系的ch4排放特征
- 第2篇數(shù)理邏輯ch4謂詞邏輯
- CH4與CO2吸附解吸特征對比研究.pdf
- 微通道中CH4流動的分子動力模擬研究.pdf
- 南嶺地區(qū)4種森林類型CH4通量影響因素分析.pdf
- NH4+-N對填埋場覆蓋土層CH4氧化特性的影響機(jī)制.pdf
- 黃陵油型氣涌出礦井CH4擴(kuò)散規(guī)律數(shù)值模擬.pdf
- [學(xué)習(xí)]概率論教學(xué)課件—ch4習(xí)題課張穎
- 13043.鄱陽湖典型苔草濕地ch4釋放特征
- 礦井CH4和煤塵的光聲復(fù)合檢測方法研究.pdf
評論
0/150
提交評論