'Coupon payment' diaporamas de présentation

How to Value Bonds and Stocks

How to Value Bonds and Stocks. What is a Bond?. A bond is a legally binding agreement between a borrower and a lender IOU. Bond Terminology. Face value (F) or Principal For a corporate bond this is generally $1,000 Coupon rate This is a Stated Annual Rate Determines the coupon payment

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Chapter 9

Chapter 9. Bond Prices and Yields. Bond Characteristics. Face or par value Coupon rate Coupon payment Maturity Yield to maturity. Accrued interest and quoted bond prices. Accrued Interest = (Annual coupon payment/2)x(days since last coupon payment/days separate coupon payment)

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Part - IX Fundamentals of Debt Securities

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Bond Valuation

Bond Valuation. Applying a general asset valuation model to bonds. A General Valuation Model. The same basic approach can be used for valuing any financial (or real) asset. First we need to answer a basic question: What do we mean by Value?

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CHAPTER 7 Bonds and Their Valuation

CHAPTER 7 Bonds and Their Valuation. Key features of bonds Bond valuation Measuring yield Assessing risk. What is a bond?. A long-term debt instrument in which a borrower agrees to make payments of principal and interest, on specific dates, to the holders of the bond.

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Opportunity Cost/Time Value of Money

Opportunity Cost/Time Value of Money. Opportunity cost -- value forgone for something else. Example: Suppose a bank would pay 3.5%/year but you decide to keep $10,000 in your mattress. Opportunity cost of keeping in mattress as opposed to the bank is $350/yr.

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Interest Rates and Bond Valuation

Interest Rates and Bond Valuation. RWJ-Chapter 7. Valuation of Bonds and Stocks. First Principles: Value of financial securities = PV of expected future cash flows To value bonds and stocks we need to: Estimate future cash flows: Size (how much) and Timing (when)

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Interest Rates What we should know about the effects of change in various market interest rates over hospitality-related

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Time

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CHAPTER 20 Hybrid Financing: Preferred Stock, Leasing, Warrants, and Convertibles

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CHAPTER 20 Hybrid Financing: Preferred Stock, Leasing, Warrants, and Convertibles

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Fixed Income

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Chapter 3 Security Types

Chapter 3 Security Types. Classifying Securities Interest-Bearing Assets Equities Derivatives Options Summary and Conclusions. Classifying Securities. Interest-Bearing Assets. Money market instruments Basic features Examples T-bills Commercial paper.

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TOPIC 5 :

TOPIC 5 :. BOND EVALUATION. What is bond? . Publicly traded Long term debt security Fixed income securities. Fixed income security. interest payments and the principal repayment for a typical bond are specified at the time the bond is issued and fixed for the life of the bond.

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Case Study: Currency Swaps IBM and the World Bank

Case Study: Currency Swaps IBM and the World Bank. Underlying Situation

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Bond Valuation

Bond Valuation. Learning Module. Definitions. Par or Face Value - The amount of money that is paid to the bondholders at maturity. For most bonds this amount is $1,000. It also generally represents the amount of money borrowed by the bond issuer. Coupon Rate -

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FIN3013

FIN3013. Lab #5. Practice Problem. Suppose that Claiborne Corporation agrees to pay you $500 every six months for 10 years and a lump sum of $10,000 in 10 years. Using an 8% discount rate, what is the present value of this promised cash flow?. What is a Bond?.

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5 Keys to Bond Valuation

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What are the characteristics of the $2 billion in bonds that Tesla Motors is issuing?

What are the characteristics of the $2 billion in bonds that Tesla Motors is issuing?. Original blog posting (May 7, 2014 ). Tesla Motors Inc., to issue $2 billion in bonds. To fund the building of their $4 to $5 billion battery production plant

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Semi-annual Coupons

Semi-annual Coupons. Semi-annual coupon payment = [coupon rate / 2] x par value e.g. 9% coupon rate, 12 year bond paying semiannually: Coupon payment= [0.09 / 2] x $1,000 = $45 Number of payments = 12 x 2 = 24 Semiannual required rate of return = 3%.

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